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USD/JPY Could be Reviving its Uptrend after the Strong Jobs Report

On Friday, strong US jobs data boosted the USD across the board. USD/JPY was a clear case where the market was tentatively consolidating ahead of the much anticipated economic release.

USD/JPY 4H Chart 2/8

(click to enlarge)

In the 4H chart, we can see the bounce from around 117.20 up to almost 119.25 after the US jobs data, which showed that the last 3 months were really strong in terms of jobs added, and that January's hourly earnings went up impressively. This data supports FOMC's chance of raising rates by mid-2015. 

USD/JPY broke above some consolidation resistance factors and looks like it is reviving the uptrend in the 4H chart. However, we might get a test early this week. If price comes down to around 118, it should find support in the bullish market. A break below 117.75 puts price back below the 200-, 100-, and 50-period 4H SMAs, and would take away the bullish bias established, by Friday's price action. The pressure would return towards the 117 handle, then the 115.56-115.85 lows.

To the upside if price can stay above 118.00, USD/JPY has pressure on the falling speedline seen in the daily chart. We can say it is a descending triangle resistance.

USD/JPY Daily Chart 2/8
(click to enlarge)

A break above the triangle resistance around 119.50 should open up the 121.70, 2014-high with risk of breaking higher and continuing the prevailing secular uptrend.