USD/JPY tests resistance zone near 113.10
USD/JPY tests resistance zone near 113.10
In the middle of previous trading session, the currency exchange rate made a confident breakout from a symmetrical triangle pattern. In accordance with expectations, the surge was stopped in resistance zone formed by the 200-hour SMA and the 50% Fibonacci retracement level located at 113.00. An allocation of pending orders suggests that markets are eager to see further appreciation of the Dollar against Yen. A successful vote on tax bill later this day theoretically might throw the rate straight to the weekly R1 at 113.57. However, until that the currency pair is expected to continue slowly climbing to the top in a little rising wedge formation. By the way, if assumption about this pattern is correct, then the rate might plunge back to support zone located around the monthly PP at 112.70.
In the middle of previous trading session, the currency exchange rate made a confident breakout from a symmetrical triangle pattern. In accordance with expectations, the surge was stopped in resistance zone formed by the 200-hour SMA and the 50% Fibonacci retracement level located at 113.00. An allocation of pending orders suggests that markets are eager to see further appreciation of the Dollar against Yen. A successful vote on tax bill later this day theoretically might throw the rate straight to the weekly R1 at 113.57. However, until that the currency pair is expected to continue slowly climbing to the top in a little rising wedge formation. By the way, if assumption about this pattern is correct, then the rate might plunge back to support zone located around the monthly PP at 112.70.
Komen:
The bullish sentiment that prevailed this week was stopped abruptly by the 113.60 mark. As a result, the pair breached a short-term ascending wedge and tried to edge lower until the 55-hour SMA located circa 113.30 was reached.
The bottom boundary of a one-week channel has not yet been reached. Thus, the pair might try to push for this line today. However, the 55-hour SMA might provide significant support.
It is likely that this moving average guides the pair for most of this session, thus stranding the US Dollar between this line and the weekly R1. The latter is likewise located near December high of 113.68.
On the other hand, the ultimate daily low is likely to be the 113.00 area where the 100– and 200-hour SMAs and the 50.0% Fibo are located.
The bullish sentiment that prevailed this week was stopped abruptly by the 113.60 mark. As a result, the pair breached a short-term ascending wedge and tried to edge lower until the 55-hour SMA located circa 113.30 was reached.
The bottom boundary of a one-week channel has not yet been reached. Thus, the pair might try to push for this line today. However, the 55-hour SMA might provide significant support.
It is likely that this moving average guides the pair for most of this session, thus stranding the US Dollar between this line and the weekly R1. The latter is likewise located near December high of 113.68.
On the other hand, the ultimate daily low is likely to be the 113.00 area where the 100– and 200-hour SMAs and the 50.0% Fibo are located.
Despite existence of a rising wedge pattern, the Dollar continued to actively appreciate against the Yen. However, it does not mean that the figure was broken, as it simply needs boundaries’ readjustment. Once this is done it appears that the breaking point matches with the weekly R1 located at the 113.57 level. From this perspective, the pair should pull back to the opposite side of an ascending channel near 113.30.
However, a release of information on the American Final GDP might result in further strengthening of the buck. In that case, the pair would need to test an alleged resistance zone located around the 113.70 mark. Apart from that, it faces no notable barriers from northern side.