Sasha Singh
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USDJPY : Testing key Resistance at 103.91

USDJPY : 4 Hour Chart

USDJPY is currently testing the key support at 103.91 preventing it to move above this level on the 4 hour chart. There also seems like a rising support trend line which might prevent the pair declining below it. So the pair seems supported and losses are limited. Investors are currently waiting for Yellen comments over economy and the guidance for the timing of interest rate increase. If she shows hawkish views on the economy, investor’s expectations for an early rate increase will be boosted and they will push the dollar up. However if the views will be dovish, dollar will decline and might cross below the rising support trend line as seen on the chart.

USDJPY : Daily Chart

On the daily chart we can see that the 50 day SMA is just about to cross above the 100 day SMA confirming an uptrend continuation. So the pair might break the current resistance at 103.91 and rise towards the next resistance level at 104.85. However if we look at the stochastic oscillator the pair is currently in the overbought zone and might decline from the current resistance. Also the %K line is about to cross above the %D line signaling a change in current uptrend to downtrend.