USD/JPY struggles at 50-DMA, good to go long on break above
USD/JPY is struggling to break above 50-DMA for a fourth consecutive session.
However, bullish RSI divergence and rising expectations of Fed tightening at March meeting raise scope for upside.
The pair is currently holding a break above major trendline resistance and we see weakness only on break below.
Break above 50-DMA currently at 114.15 could see further gains.
On the flipside break below trendline support at 113.50 could see test of 100-DMA at 112.25.
Support levels - 113.50 (Trendline resistance turned support), 113.27 (1H 200-SMA), 113
Resistance levels - 114.15 (50-DMA), 114.95 (Feb 15 high), 115.62 (Jan 19 high)
Good to go long on break above 50-DMA at 114.15, SL: 113.50, TP: 114.95/ 115.60/ 116
However, bullish RSI divergence and rising expectations of Fed tightening at March meeting raise scope for upside.
The pair is currently holding a break above major trendline resistance and we see weakness only on break below.
Break above 50-DMA currently at 114.15 could see further gains.
On the flipside break below trendline support at 113.50 could see test of 100-DMA at 112.25.
Support levels - 113.50 (Trendline resistance turned support), 113.27 (1H 200-SMA), 113
Resistance levels - 114.15 (50-DMA), 114.95 (Feb 15 high), 115.62 (Jan 19 high)
Good to go long on break above 50-DMA at 114.15, SL: 113.50, TP: 114.95/ 115.60/ 116