The US Dollar has finished its uptrend wave against the JPY and has reached 118.50, the highest level since February 2016. It started to make a correction wave and skidded to 112.50 last Tuesday for around 600 pips, but Janet Yellen stopped the bleeding in her speech after she has announced that the Federal Reserve will raise the exchange rate gradually and maybe raise it three times this year. As a result, the USD/JPY currency pair went ahead to 115.50 again.
The USD/JPY is trading in a series of down corrective waves around 23.6%. It is touching the downside short-term trend line we can see in the photo, so we can expect that the pair will decline in the next days, especially since it is trading around the SMA50 which is considered a key resistance level for the pair.
The Stochastic indicator is still giving us a buy signal since Yellen's speech but the RSI indicator has another opinion - it gave us the sell signal yesterday, so it is possible that the stochastic will give the sell sign too.
The Next Few Days
We can sell the pair around the current levels at 114.70 after it backs down from the short-term trend line and keep our first target at 113.30 and the second one at the key support area around 112.00. If it breaks the trend line we can buy it to 117.10 and maybe make new levels.
We have to be careful about the upcoming hot news like the president-elect Donald Trump today is for the first day in the White House.
