We have been getting a lot of clues that the market has found a bottom for USD/JPY. We are also seeing clues that the market is ready to prop up the USD/JPY. After the US election drama, the pair offered more clues of its bullish outlook.
USD/JPY Daily Chart 11/10
(click to enlarge)
Whipsaw gives way to bullish breakout
- As we can see in daily chart, the market was very indecisive around the time of the election.
- At one point, USD/JPY fell from 105 to almost 101.
- Then, a sharp reversal brought the pair back towards the key resistance around 105.50.
- By the start of the 11/10 session, USD/JPY had broken a falling trendline and a resistance pivot.
- It is now testing the 200-day simple moving average and might find some stickiness, but the bullish outlook is stronger then it has in months.
- Look for the market to test the July high around 107.65, which is another key resistance.
- The market could still stay sideways in the medium long term.
- A break above 107.70 on the other hand, opens up 110, 112, and 114.