USD/JPY heads towards 109.59
Updated
Morning outlook - USD/JPY heads towards 109.59
- The USD/JPY exchange rate acted exactly as it was expected. Namely, it made the second attempt to break through the monthly S2 at 108.82, but failed. In result of a rebound, it broke through the upper boundary of a junior descending channel.
- At the moment, it is heading upwards towards a combined resistance level set up a combination of the weekly PP at 109.59 in conjunction with the 100- and 200-hour SMAs.
- Most probably, their combined effort will force the pair to retreat.
- An aggregate of technical indicators support this possibility by sending strong sell signal.
- But in the meantime, the average market sentiment remains 68.24% bullish, which should not be disregarded in the larger perspective.
Trade closed: stop reached
USD/JPY spikes above 200-hour SMAThe way the currency pair ended up previous trading day shows how it is important in certain cases to take into account the overall market sentiment.
As it can be seen from the chart, yesterday the exchange rate has successfully managed to break through a combined resistance level set up by the 100- and 200-hour SMAs as well as the weekly PP.
Despite the 22-pip fall in the early morning, it seems that the rate is moving in a narrow short-term ascending channel.
If this assumption is true, the pair might get a chance to gradually surge to the area between 110.10 and 110.30 levels, which represents a location of the northern boundary of a senior descending channel.
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