USD/JPY hovers around 23.6% Fibonacci, extends upside in ‘bullish bat’ pattern, stay long
- USD/JPY extends upside after completing ‘Bullish Bat’ pattern, bias higher.
- Yen dampened after BOJ’s decision to buy more bonds maturing in 5-10 years.
- The major is extending upside for 3rd straight session, is attempting retrace into slopping channel.
- Technical studies are biased higher, RSI and Stochs have rolled over from oversold territory.
- Price action has broken above 5-DMA and 23.6% Fib retrace of 113.572 to 108.282 fall.
- Next bull target lies at 110.37 (nearly converged 38.2% Fib and 20-DMA) ahead of 111 handle.
- On the downside we see immediate support at 5-DMA, breach there will see resumption of downside.
- Focus now on nonfarm payrolls due later in the US session for further impetus.
Support levels – 109.57 (23.6% Fib 113.572 to 108.282 fall), 109.18 (5-DMA), 108.60 (Aug 18 low), 108.26 (Aug 29 low)
Resistance levels – 110, 110.37 (nearly converged 38.2% Fib and 20-DMA), 111
Recommendation: Bias higher, stay long for upside.
Source: FXWire Technicals
2. February 2018 12:13:15