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USD/JPY prints bullish outside day, more gains ahead?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    According to Valeria Bednarik, Chief Editor at FXStreet, following the bullish outside day in USD/JPY, the price is currently faced by a major resistance level, and some consolidation should be expected.

    Key Quotes

    "The American dollar outperformed against the Japanese yen, as the pair advanced a couple of pips beyond the 114.00 level in the American afternoon, supported by rising stocks worldwide. The pair traded as low as 112.15 this Tuesday, down at the beginning of the day as Monday's negative mood favored safe-haven assets."

    "The price is currently at a major resistance level, and some consolidation should be expected, as the current region stands for the past two sessions highs. Still far below the 38.2% retracement of its latest daily decline at 115.05, the daily chart shows that the technical indicators have turned higher around their mid-lines, rather reflecting this daily gain than suggesting further advances."

    "In the shorter term, the price has accelerated well above its moving averages, with the 100 SMA crossing above the 200 SMA, and at the same time, the technical indicators are giving some signs of exhaustion within oversold territory."

    "Nevertheless, with the pair pressuring its daily high, a new leg higher may follow after some consolidation. In the 4 hours chart, the technical indicators diverge from each other, with the Momentum heading lower and the RSI higher, both above their mid-lines.
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