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Home » Daily Technical Reports » USD/JPY Daily Chart 04/03/2016

USD/JPY Daily Chart 04/03/2016

USD/JPY traded somewhat lower yesterday, but hit support at the upside support line taken from the low of the 24th of February. Today, during the Asian morning, the rate rebounded again. The pair started a short-term recovery following a test at the key support level of 111.00 (S3) and is still trading above the aforementioned uptrend line. As a result, I still see the likelihood for the pair to challenge the psychological barrier of 115.00 (R1). A solid US employment report today could be the catalyst for such a move. The notion is also supported by our short-term oscillators. The RSI rebounded from near its 50 line, while the MACD, already positive, shows signs that it could bottom and cross above its trigger 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 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.

JYP 04

 

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