Mon, May 09 2016, 08:41 GMT SzrnFX
USD/JPY traded higher on Friday and today during the Asian day, it managed to emerge above the (resistance now turned into support) line of 107.40 (S1). Now the rate looks to be headed towards the 107.80 (R1) barrier, where a decisive break is possible to see scope for extensions towards the next resistance zone of 108.70 (R2). Our short-term oscillators detect upside momentum and corroborate my view. The RSI moved above its 50 line, while the MACD, although negative, stands above its trigger line and looks ready to turn positive soon. Switching to the daily chart, I still see a longer-term downtrend. As a result, I would treat the recovery from 105.50 (S3), or any extensions of it, as a corrective phase for now.