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FxWirePro: USD/JPY faces stiff resistance at 110.20, decisive break above could see further upside

  • USD/JPY extends gains on the day after FOMC hiked rates Wednesday and called for one more hike this year alongside balance sheet normalization.
     
  • The pair finds major resistance at 110.20 (trendline) and we see upside continuation on decisive break above.
     
  • 200-DMA at 110.47 is next major resistance above 110.20, violation there will see test of 110.80 (June 9 high).
     
  • Technical indicators are not conclusive, RSI has taken a turn north, but remains below 50 level and MACD still bias lower.

Support levels - 110.01 (5-DMA), 110, 109.11 (June 7th low), 108.85 (trendline)

Resistance levels - 110.47 (200-DMA), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.67 (20-DMA)

Recommendation: Watch out for decisive break above 110.20 with confirmation from RSI above 50 to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 38.5604 (Neutral), while Hourly JPY Spot Index was at -89.3404 (Bearish) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

 

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