The USD/JPY pair seems to have found some support at 111.622 levels and is edging higher to 111.92. The intraday bias remains on the upside at this point. A firm break of 111.92 resistances will confirm the resumption of a whole rebound from 111.622 levels. Due to this, the pair would target a projection of 112.30 levels.
In the longer term, current developments suggest that any rebound from the support level is developing into a medium term rise. There is no confirmation of trend reversal yet and we’ll continue to treat such rebounds as a corrective pattern. Further rise is expected now with a break at 111.92 levels confirming the completion of the rebound.
The dollar finally finds some support as the market continues to gain some momentum. The upward days are characterized by the strong bullish candles, whilst any recovery up-days are found with some struggles to make any headway. The current price action candle was another consolidation period where the bulls made some sustainable impact before resuming the upward trend. The daily momentum indicators have taken a corrective outlook with the stochastic falling below 20 and looking for reversals at this point. The pair is now into the old pivot band and hence, it will be interesting to see the reaction in the near term. The likelihood is that the support should hold the levels which have often been seen as an inflection point. The four-hour chart shows that the resistance at 112.30 is now the key level.
The USD/JPY pair settles above the support base which is formed over 111.62 levels. This keeps the bullish trend scenario valid for the upcoming period. It is important to note that the EMA50 is still below the price action.
Therefore, we believe that the chances to resume the bullish trend on the intraday
and short term basis are valid with its next main target located at 112.30 levels. Holding above
112.55 levels should be the key and the 50EMA testing represents the key condition to continue with the suggested rise. The expected trading range for today is between 111.62 support and 112.55 resistance levels. The expected trend for today is bullish.
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This article was originally posted on FX Empire