USD/JPY: bulls to make a move at 200 DMA?

By FXStreet FXStreet (Guatemala) – USD/JPY is stationary on the 120 handle, but is posed for a possible upside chance according to analysts at Scotiabank.

The USD/JPY rate has been stuck in familiar ranges for some time, given the continued uncertainties and lack of direction in Global markets. Equities have been pretty volatile of late, ever since Black Monday and the Yen has been in favour in times of risk-off and then USD/JPY has managed to rally as risk-apatite returns and investors become impatient with the funds sitting idle.

According to Eric Theoret, CFA, CMT FX Strategist at Scotiabank, they remain biased to gains above the 200 day MA 120.89, “But acknowledge the potential for decline as observed with Friday’s short-lived plunge below 119.00.”

USD/JPY neutral/bullish – (current spot 120.25 and high 120.47, R1 120.73)

Meanwhile, the price struggles to pull away from around the 4hr 200 SMA at 120.17 where otherwise, the rate is supported at the 50 SMA on the hourly currently at 120.22 while MACD on the same time frame is turning less negative. RSI (14) 47.
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Source:: FX Street