Last week the US dollar suffered losses against the Euro and the British Pound and halted its climb versus the Yen after the optimistic tone which came from the Fed. All traders are looking forward to the employment reports from the USA next Friday about the Non-Farm Payroll data.
The USD/JPY currency pair was trading inside a price channel in a corrective wave and reached the 50% Fibonacci twice, then returned back to rise again. Now it’s trading around the upper limit of the channel and we're waiting for the breaking up to confirm the flag pattern which will lead the pair to further highs. Traders already know that the Fed keeps a bullish stance on the progress of the economy, so any positive guidance found in the minutes should do little to help the Dollar. the Moving Average still trades below the prices and the MACD indicator is up and above the zero level.
The Next Few Days
After we saw the channel breaking up we have to see the day candle close above the upper limit outside the channel to enter the market with buy positions and keep our first target at 114.32 and the second one at 118.00.
We have to be careful in trading this week because we have some important news which will create good opportunities, such as the PMI data and the ADP and NFP from the USA, in addition to a FOMC meeting on Wednesday.
