Technical Analysis

USD/JPY Analysis: Heads Towards 112.70 As Expected

Typography

As it was forecasted yesterday, after making a rebound from combined support set up by the weekly PP, the 200-hour SMA and the lower line of a junior descending channel the pair started moving in the opposite direction and managed to bypass two other MAs. The surge happened despite release of negative employment data, which means that markets are mainly focused on situation related to tax reform and the US government shutdown. Today the upward movement is expected to continue as well, even though there is a high chance that it will be stopped, first, by resistance zone near the monthly PP and then by the 50% Fibonacci retracement level located at 113.00. However, a change in information landscape or aggravation of situation with North Korea might alter this generally bullish scenario.

Author: Dukascopy Swiss FX GroupWebsite: http://www.dukascopy.com/
Dukascopy Swiss FX Group
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
More from the author