2 Jun 2014
USD/JPY threatening 102.00, breaking key trendline
FXStreet (Bali) - USD/JPY is trading on a positive note at the Tokyo open, with the rate currently at 101.93, session high, after a NY close at 101.74.
It is worth noting that today's resolute upside bias is allowing the pair to confirm the break of an descending trendline coming off 104.00. This technical development, if accompanied by the bullish outlook on the Nikkei 225 today - up 1.3% - after regaining the 14,500 support should strengthen the case for a possible 102.00 retest, level where heavy offers are still reported.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows initial candle opened above 100 SMA but price slowly pulls back turning indicators south in positive territory, while in the 4 hours chart indicators maintain the positive tone, but unless a clear price acceleration above 102.10, the pair has not much room for a stronger advance this Monday."
It is worth noting that today's resolute upside bias is allowing the pair to confirm the break of an descending trendline coming off 104.00. This technical development, if accompanied by the bullish outlook on the Nikkei 225 today - up 1.3% - after regaining the 14,500 support should strengthen the case for a possible 102.00 retest, level where heavy offers are still reported.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows initial candle opened above 100 SMA but price slowly pulls back turning indicators south in positive territory, while in the 4 hours chart indicators maintain the positive tone, but unless a clear price acceleration above 102.10, the pair has not much room for a stronger advance this Monday."