Technical Analysis – USDJPY looking bullish but will it break 99-107 range?

jpy_3_newsUSDJPY has had a very positive run since successfully holding the 100 level on September 27. The dollar had traded as low as 99.53 versus the yen back around mid-August. Those levels, which also represent 3-year lows have managed to hold for now.

Because of the month-long rally in dollar / yen, the medium-term picture has now turned more positive. Price action is above the cloud, which is bullish, while the Tenkan-sen line has crossed above the Kijun-sen line since October 10. Price is also holding above both the Tenkan-sen and Kijun-sen lines. Dollar / yen could target the top of its 5-month range at 107.50.

On any correction of the pair, the cloud top of 103.50 could act as support. The Relative Strength Index at 61 is also bullish.

To sum up, the pair’s medium-term prospects are looking positive and it should target the 107.50 high now that 105 has been taken out. In longer-term time frames however the picture is not as clear as this move could simply be a retracement of the major down-move in dollar / yen that took place earlier this year.

Origin: XM

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