USD/JPY - Are the Bulls Back?Today was a significant day for the USD/JPY pair as we finally broke out of the 12-day period of consolidation. It is noteworthy that the consolidation phase was very tight giving us a 30-40 pip trading range for the whole period except some attempts to push upwards and downwards. While this period wasn't the best for trading as the price action was choppy and indecisive, that apparently formed us a descending trend-channel.
The macroeconomic data out of the US has recently shown that the economy is currently performing well better than its major counterpart European. That has been clearly seen in the top currency pairs in the past few days. So given the current USD strength, the area around the 112.846 level seems to be the next target for bulls. Although, the Yen might soon become more favorable if the Bank of Japan keeps its monetary policy unchanged.
The reasons for the continuation of the uptrend:
1. break of round nr - 112.000
2. the continuation of the smaller uptrend from 25th of March on the 1D timeframe (a continuation of higher highs and higher lows)
3. the price is above the 50, 100 and 200 EMA on the 1D timeframe
4. break of the 0.618 Fibonacci level
There will be important macroeconomic data out of the US and Japan on Thursday and Friday so you should keep an eye on that as well. There remains a slight bearish case to the downside.
This is my first post so let me know what do think of it.
Cheers
