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USD/JPY Today Chart 03/03/2016

USD/JPY edged higher during the Asian morning Thursday after it hit support slightly below the 113.40 (S1) support line. The pair started a short-term recovery following a test at the key support level of 111.00 (S3) and now I see the likelihood for the rate to challenge the psychological barrier of 115.00 (R1). A decisive move above that zone could aim for the next important resistance zone of 116.00 (R2). Our short-term oscillators detect upside speed and support that the pair is possible to continue higher for a while. The RSI rebounded from near its 50 line, while the MACD, already positive, shows signs that it could rebound from near its signal line. As for the bigger picture, I still believe that the close below 116.00 (R2) has turned the longer-term outlook negative. However, bearing in mind that the pair failed twice to break below the 111.00 (S3) zone and also that there is positive divergence between the daily RSI and the price action, I would like to stay flat for now as far as the broader trend is concerned.

YEN 3

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