USD/JPY is under pressure
By Mark Jensen
USD/JPY remains in a smooth upwards channel. Yesterday the pair slid to its lower border in the 101.50 area as the Bank of the Japan left policy unchanged. Judging from the regulator’s rhetoric, its policy will remain unchanged for a while. This is increasing pressure on USD/JPY to sink lower, to the 200-day MA and February low at 100.75. The pair still hasn’t reached the lower daily Bollinger band. Daily MACD’s approaching 0.
Today there was a bullish hammer at H4 and the greenback recovered to the bottom of the daily Cloud in the 102 area. Even if the channel stays, we may see more action in the 102.50 (200-period MA)/101.50 area. As dollar is still at the oversold levels at this timeframe we will sell on the increase towards 102.50 targeting once again the channel’s bottom.
Chart. Daily USD/JPY
Chart. H4 USD/JPY
To contact the writer of this story: Mark Jensen at firstname.lastname@example.org