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    USD/JPY: moving up towards 122.0 resistance area – BOJ meeting on tap

    The USD/JPY has broken out of its three-month long sideways consolidation and moved higher. Although its the BOJ meeting tonight with volatility expected the pair is displaying interesting technical forms.

    It is now rallying up to a familiar resistance area – and historic highs at the 122.0 which has been touched twice, once in late 2014 and once in March 2015, when the pair posted its 8-year high at 122.02.

    The pair will probably now continue up to retouch the same level a third time, especially since the target for the breakout from the consolidation zone is at 121.95 – the same level as the previous resistance highs. The target was calculated extrapolating the height of the consolidation higher by 61.8% – and reflects the minimum expectation for the breakout.

    The pair has now paused in its rally and pulled-back into the buy zone between the 10 and 20 MA’s (on the 4-hour chart) providing traders with another opportunity to jump on and ride the trend higher.

    A break above the hammer candle (on 4-hr) highs at 121.15 would probably lead to a move up to an initial target at 121.46 just below the 121.47 recent highs. A break above 121.47 would probably then confirm a second continuation leg up to the 121.95 target for the range breakout.
    USDJPY21b

    The USD/JPY has broken out of its three-month long sideways consolidation and moved higher. Although its the BOJ meeting tonight with volatility expected the pair is displaying interesting technical forms.

    It is now rallying up to a familiar resistance area – and historic highs at the 122.0 which has been touched twice, once in late 2014 and once in March 2015, when the pair posted its 8-year high at 122.02.

    The pair will probably now continue up to retouch the same level a third time, especially since the target for the breakout from the consolidation zone is at 121.95 – the same level as the previous resistance highs. The target was calculated extrapolating the height of the consolidation higher by 61.8% – and reflects the minimum expectation for the breakout.

    The pair has now paused in its rally and pulled-back into the buy zone between the 10 and 20 MA’s (on the 4-hour chart) providing traders with another opportunity to jump on and ride the trend higher.

    A break above the hammer candle (on 4-hr) highs at 121.15 would probably lead to a move up to an initial target at 121.46 just below the 121.47 recent highs. A break above 121.47 would probably then confirm a second continuation leg up to the 121.95 target for the range breakout.
    USDJPY21b


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