In early hours of this trading session the buck stopped the surge and bounced off from the 112.79 level. In essence, this turning point simultaneously represents the second reaction high of a two unconfirmed descending channels. As the northern side is additionally secured by the weekly and monthly PP as well as the slipping 200-hour , the Yen is expected to resume the rally against the Dollar tending to reach the 112.13 mark by the end of the week. However, this scenario might be altered due to release of information on the American labour market. In that case the currency rate might end the week near the psychological 113.00 level.
Because of release of better than expected information on employment change in the United States, the buck took the lead and in the first hours of this trading session successfully bypassed combined resistance put by the weekly PP and the 200-hour SMA. In larger perspective, the surge should be attributed to junior ascending channel, which guided the pair towards the upper trend-line of a medium scale symmetrical triangle through this week.
From trade pattern’s perspective, the pair should make a rebound somewhere near the 113.10 level and resume the downward movement. But since the rate has crossed practically all technical barriers on its way, it has a good chance to break the above pattern and continue to climb towards the weekly R1 at 113.26.
Check out our trading platform: