27 Oct 2014
USD/JPY gaps higher, bulls in control s/t
FXStreet (Bali) - USD/JPY gapped higher in early Asia, reaching its highest at 108.33 before a mild retracement, currently sending the rate towards 108.23 seeking liquidity.
Valeria Bedanrik, Chief Analyst at FXSteeet, notes: "The pair shows a mild positive tone coming from technical readings in the 1 hour chart as indicators aim higher above their midlines, and 100 SMA advances fastest than 200 one, widening the distance in between both well below current price."
In the 4 hours chart however, Valeria observes that "technical readings had lost their upward strength despite holding near overbought levels, while 200 SMA stands above 100 one, which limits chances of a stronger rally."
Valeria adds that "a clear advance beyond 108.50 is required to trigger stops and see the pair advancing towards 108.90."
Valeria Bedanrik, Chief Analyst at FXSteeet, notes: "The pair shows a mild positive tone coming from technical readings in the 1 hour chart as indicators aim higher above their midlines, and 100 SMA advances fastest than 200 one, widening the distance in between both well below current price."
In the 4 hours chart however, Valeria observes that "technical readings had lost their upward strength despite holding near overbought levels, while 200 SMA stands above 100 one, which limits chances of a stronger rally."
Valeria adds that "a clear advance beyond 108.50 is required to trigger stops and see the pair advancing towards 108.90."