USD/JPY delivered to its weekly positive aspects and edged greater for the 1/3 consecutive session on Friday. A bullish flag breakout is in play, with the pair seeing clean multi-month tops and counting however barely overbought RSI on the every day chart may cap features amid a subdued USD charge action, FXStreet’s Haresh Menghani reports.
See – USD/JPY: Break above 109.30/40 to go away the a hundred and ten psychological degree in play – OCBC
“Market contributors now seem ahead to the US monetary docket, proposing the releases of Personal Income/Spending figures, Core PCE Price Index and revised Michigan Consumer Sentiment index. The information may want to furnish similarly pointers about the US monetary strength, which, alongside with the US bond yields, may impact the USD.”
“The USD/JPY pair on Thursday verified a sparkling bullish breakout thru a flag chart sample and looks poised to extend the current robust upward trajectory. However, RSI (14) on the day by day chart is nevertheless maintaining in the overbought territory and warrants some warning earlier than positioning for any in addition appreciating move.”
“Immediate resistance is pegged close to May 2020 swing highs, round the 109.80-85 region. This is carefully accompanied through the key a hundred and ten psychological mark. Some follow-through shopping for ought to pave the way for a cross toward the subsequent applicable hurdle close to the 110.75-80 provide zone.”
“The descending channel resistance breakpoint, presently close to the 109.00 mark now appears to guard the instantaneous downside. Any subsequent slide may be considered as a shopping for possibility close to the 108.60-55 region, which need to now act as a sturdy near-term base for the major.”