The USD/JPY rises for the third time during the week, reaching a fresh weekly high at 135.50, spurred by positive US jobs data released on Friday, which caused a knee-jerk reaction of almost 200 pips, from around 133.07 to its aforementioned weekly high. At 135.06, the USD/JPY gains 1.66%.
USD/JPY’s Friday price action shows that the major formed a huge bullish-engulfing candle pattern, meaning buying pressure is stepping in. At the same time, the exchange rate sits above the 50-day EMA at 134.84, which, decisively broken, could pave the way towards the 20-day EMA at 136.04. Worth noting that buyers are gathering momentum, as shown by the Relative Strength Index (RSI), about to cross the 50-central line, another reason for sellers to get out of the way once buyers have regained control.
Therefore, the USD/JPY’s first resistance would be the 135.00 figure, followed by the 20-day EMA at 136.04, and then the June 22 daily high at 136.71.
USD/JPY Daily Chart
Meanwhile, the USD/JPY hourly chart illustrates the major faced resistance near the R3 pivot at 135.60, dipping towards the R2 daily pivot point at 135.00, where bids keep the pair above the 135.00 figure. Nevertheless, the uptrend appears to be losing steam, as the Relative Strength Index reached overbought territory, meaning that buying pressure is easing, so a pullback towards the R1 daily pivot around 133.94 is on the cards.
USD/JPY Hourly chart
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.