The yen erased all its latest gains after the Jobless Claims Report. Now traders are demanding further action from the Bank of Japan. If the pair continues softening the central bank will have to act accordingly.
Current situation
The market was low volatile during the European Session on Thursday and became active only after U.S Jobless Claims report. The dollar strengthened on the back of the strong U.S labor data. Traders were able to push the price higher. The instrument broke the level 101.40 and kept rallying. The resistance is at 102.50, the support comes in at 101.40.
MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI bounced from the oversold area and is heading upwards.
The price broke the 50 and 100 EMAs in the 1 hour chart. After breaking the lines the pair continued advancing north. Now the 200-EMA acts as a resistance for the USD/JPY. The moving averages (50, 100 and 200) direction is downwards in the mentioned time frame.
Trading recommendations
We believe the USD/JPY will move on to test the next bullish target at 102.00, where the 200-day moving average lies - Fort Financial Services experts said (rated among the TOP Forex Brokers Masterforex-V World Academy http://www.masterforex-v.com/).
