Posted on March 20, 2015 by the XM Investment Research Desk at 7:29 am GMT
USDJPY has scope for further gains after failing to close below the key 120.00 level in over 2 weeks. After a big dip to 119.27 on Wednesday, the pair rebounded and opened at 120.78 today. RSI is above 50 so this is a bullish sign. Also the market remains above the Ichimoku cloud.
In the medium-term some consolidation is expected as the tenkan-sen and kijun-sen have paused their upside move. Resistance is seen at the March 3rd high of 122.01 and this is a critical level. A failure to break above this peak and a fall back down would form a double top pattern and threaten the bullish trend. To the downside support is seen at 120.00 and at 118.65.