USD/JPY Could Be Poised To Rally

Yesterday, price pulled back to 109.50 which was where a previous resistance turned into support area. While this is less than Fibonacci 38% correction point of the rally, MACD is hinting of a price low and a possible rally with the fast line of MACD turning up just above the zero line. Stochastic has stabilized and could be above to see a bullish crossover and a rally up towards the overbought extreme again. Price was also support by the 20EMA as well.

If price is supported at this level, we are likely to see a rally to test the previous high of 110.26 again. We would recommend buying at 109.70 with a stop at below 109.45 for 110.25.

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