USD/JPY: Dollar Yen tapping into 108.000 as anticipated!
Good afternoon traders and welcome back to EverythingFX.
The US Dollar is currently trading at 108.156 against the Japanese Yen during today's London session.
As mentioned in the prior article i did favour a push up into the 108.000 psychological region which has successfully been tapped into, providing us with a good 200 pip move from the monthly support level at 106.000. Where to next, you may be wondering?
Starting on a weekly timeframe we have seen a good push for the past 3 weeks straight into 108.000, Yes i do favour further bullish momentum but i wouldnt be surprised if we start to see some sort of correction before heading higher! On a technical picture, we seem to have a minor level of resistance at 108.250 which we could see a push off of leading into the US session later today. If we were to get a push lower i do think we could come and tap into our psychological level of 107.000 which would provide a nice retracement before potentially looking for further upside on the pair.
On a technical picture, we are still bullish, it is important to note and factor that into your risk management when taking a short on the retracement of this move. What would invalidate this right now is a break of this minor resistance of 108.250 which would see us heading back to 110.000 monthly resistance!
Fundamentally we have Industrial Production (YoY) out in the US today which could spark some volatility in the pair at the start of the US Session however i think the market is currently on hold for the FOMC which will be interesting to see what their stance is and if they follow through with the cut! It could be a case of we just wait and see what price action presents to us further in the week before taking a position on this! Stay tuned to our market news section and social media accounts for further updates!