Today we’d like to provide you with an overview of the American dollar vs. the Japanese yen pairing, as we expect some changes there. The USD/JPY demonstrates a triangle chart pattern with an upward movement. Looking at our moving averages, we can see signs of further bullishness in the pair, which is also confirmed by the relative strength index. The important thing here is to keep an eye on the level of 113.95 - if the pair is trading above it, then the USD/JPY has a chance to go further up toward 114.40 (and up, if the market allows it).
Due to the particular movement of the trend, we expect that the price range of the USD/JPY will increase. This opens up the possibility to go long, awaiting that 114.40 we mentioned, and even 114.70 (which is an important resistance level), if we have further ground to be optimistic. If you would rather bet on a more bearish behavior, then you can open short deals with 113.60 as a target - that’s in case the USD/JPY drops below 113.95, which could start another retreat further down. If the price starts decreasing, watch out for the support levels at 113.60 and 113.10.
As of the publication of this article, the USD/JPY is trading around 113.88 and though there is some dissonance among different indicators, the majority of them are showing sell signs.
