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

USD/JPY Turning Bullish

USD/JPY has been in consolidation mode in 2017 after a sharp bullish push at the end of 2016. The chart is showing that USD/JPY might be turning bullish again. 

USD/JPY Daily Chart

(click to enlarge)

Bullish Signs:
- During the 7/3 session, price shot up above 113 and broke above a couple of projected falling resistance. 
- We should note that the June low was significantly higher than the previous, April low so we already had some signs that the market might be turning bullish. 
- Furthermore, the RSI remained above 40 for the most part in June after it pushed above 70 in May. This shows maintenance of the bullish momentum we saw in the April-May rally. 
- The chart shows resistance at 114.33, which is the May high. Above that, we can also anticipate bullish continuation towards the 115.60-116 resistance.
- For 2017, I think USD/JPY has 118 in sight. 118.65 is the high established just before the turn of the year. So technically, a bullish continuation outlook puts the target above 118.65. But, in case the USD/JPY is still in a long-term consolidation, we should anticipate the potential of price falling short of that high instead of extending above it. 
- Now, the most aggressive bullish outlook should be limited to 121.60-122, which was a key resistance area since 2014.