Jul 02 2018

USDJPY- Will it hold the trend channel

The USD/JPY pair has broken the 111.00 major level early on Monday as the US Dollar continues last week’s moves against the Japanese Yen and is heading back into May’s highs near 111.39. Technical readings in the daily chart favor another leg higher ahead, although the upward strength remains limited. Momentum indicators are giving bearish bias with 14-day Relative Strength Index (RSI) at 59 and Moving Average Convergence Divergence (MACD) above zero line. The pair is holding on to the 377 day Simple Moving Average (SMA) which is acting as immediate resistance level and support at around the 144 day SMA. Initially a level of 109.15 that is 144 day SMA can be targeted, on a convincing break of the same is likely to take the pair towards 108.10 may end lows.