Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

USD/JPY Trading Up Towards Resistance around 102.70

USD/JPY has been bullish this week after putting in a price bottom above 101.30. During the 4/17 session there was a brief retreat below 102, but the market pushed the pair higher for another bullish swing.

(usdjpy 4h chart, 4/17)

The 4H RSI is pushing above 60, which reflects a lack of persistent bearish momentum. We could assess the lack of bearish momentum by simply looking at price action from February to now, which is essentially a consolidation market, with a slight bullish bias.

As USD/JPY approaches the 102.70 area, it will be testing some common resistance levels during the 2-month-and-counting consolidation. We also see the 50% retracement of the 104.13-101.32 swing. We should anticipate some resistance around 102.70, especially if both stochastic and RSI readings are in overbought territory. 
If a weak bearish swing occurs after that, expect further upside toward the highs of the aforementioned consolidation range.