The greenback reached its three-month high against yen as market expects the Fed to raise its interest rate this year, while the Bank of Japan maintain their stimulus program.

According to a Bloomberg survey, BoJ is expected to maintain its policy in their meeting next week.

We are expecting US GDP and US non-farm payrolls report next Friday, which could give more clues about US economy and Fed’s next move.

Technical Analysis:

Intraday bias for USDJPY currently is bullish. MA 20 and MA 50 are rising on hourly chart. Price currently is moving above those MA and testing intraday key resistance at 105.339. If the resistance breaks, I expect the USDJPY will move higher, up to 105.588-105.865.

However, we can see that hourly stochastics has crossed down. Therefore, we should be prepared if any correction occurs today. In that case, we can wait for bullish signal confirmation on a pull-back move to within the intraday support area at 105.090-104.688 to go long with 105.339 as target and 105.588 in extension.

Be very careful if the price managed to break support at 105.090 because it will turn the intraday bias into bearish and possibly will push USDJPY lower to 104.535-104.286.

Trading Plan:

– Buy on break of 105.339; target at 105.588 or 105.865
– Buy on bullish signal confirmation within 105.090-104.688; target at 105.339 or 105.588

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