FxWirePro: CAD/JPY Bears Drag Major Downtrend Upon Breach Below Neckline Of Head & Shoulder Pattern – Trade & Hedging Setup
FxWirePro: USD/JPY edges higher despite negative Asian equities, break above 110H EMA to see further upside
USD/JPY chart - Trading View
USD/JPY ignores negative Asian equities, trades 0.25% higher on the day at 107.43 at 04:10 GMT.
Less dovish rhetoric from Fed speakers overnight helps US dollar recovery, pushing the pair higher.
Technical indicators show signs of further upside in the major. 'Bullish Divergence' on Stochastics supports upside.
The pair has bounced off with a 'Hammer' formation and edged above 5-DMA. Stochs and RSI are on verge of a bullish rollover from oversold levels.
Major trend in the pair is bearish. Price action is currently capped at stiff resistance at 110H EMA at 107.46. Break above will see further gains.
Next major hurdle on the upside lies at 200H SMA at 107.87 ahead of 108.23 (21-EMA).
Rejection at 110H EMA and resumption of downside eyes 78.6% Fib at 106.31. Bearish invalidation only above 200-DMA.
Support levels - 106.31 (78.6% Fib), 106, 105.53 (88.6% Fib)
Resistance levels - 107.87 (200H SMA), 108, 108.23 (21-EMA)
Recommendation: Stay long above 110H EMA (107.46), SL: 107.00, TP: 107.85/ 108.25/ 108.50
Refer our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-holds-above-107-handle-eyes-786-Fib-at-10631-1552837).
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.