USD/JPY rose to 98.70
USD/JPY extends the rebound from the 200-day MA at 96.60 on the growing optimism about the US budget deadlock. On Tuesday the pair has strengthened into the 98.70 area after a dip in the Asian trade. The greenback has finally broken above the 98.60 resistance (daily Ichimoku, Friday and Monday highs, 50% Fibo).
The pair could surge rapidly in case of any positive news from the US. However, technically, the picture is not so bright: we see a MACD convergence on the H4 chart. Watch the 200-period MA on the H4 (currently at 98.66) – this line has acted as a resistance for a couple of times.
Resistance: 98.80, 99.00 (61.8% Fibo)
Support: 98.35, 98.10/00. 97.60/50
Chart. H4 USD/JPY