USD/JPY Looks To Trade Higher!

USD/JPY edged higher as the Japanese Yen was weakened by the JP225’s (Nikkie) growth. Technically, the pair has shown oversold signs, so an upwards movement was somehow expected.

Surprisingly or not, the pair resumes its growth even if the United States economic figures have come in worse than expected. The Yen started to depreciate aggressively after the dovish BOJ. The traders have ignored the Dollar Index drop and have pushed the pair higher only because the Yen was very weak.

DXY’s potential growth after the current sell-off could bring more buyers in USD/JPY. The US Flash Manufacturing PMI and the Flash Services PMI dropped signaling a slowdown in expansion. Still, the USD is still expected to rise after the hawkish FED.

USD/JPY Technical Analysis!

USD/JPY reached the ascending pitchfork’s upper median line (uml) at the moment of writing. It has climbed as much as 110.20 above 110.08 former resistance. Technically, an upside breakout, rally, was somehow expected as the pair has continued to stay near the descending pitchfork’s upper median line (UML).

Its failure to make new lower lows or to at least reach and retest the 109.06 level signaled a new leg higher. Also, the outside sliding line (SL) represented a dynamic resistance. The aggressive breakout signaled further growth.

Conclusion!

Jumping far above the UML and SL was seen as a bullish sign. Stabilizing above 110.08 and making a valid breakout through the upper median line (uml) could activate an upside continuation!

 

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.