USD/JPY: bullish bias firmly in place – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the USD/JPY pair closed at its highest since August 30th, rallying up to 121.47 on Friday.

Key Quotes:

“The advance was supported by the strong upward momentum in worldwide stocks, but also on speculation the Bank of Japan will extend its economic facilities in the meeting it will have this week. Japanese inflation remains well below the 2.0% target, and a more aggressive monetary policy stance has been on the table for over a month already, moreover, as the Central Bank will release this time its semi-annual outlook on the economy. “

“The pair has advanced steadily during the past two weeks, and the rally stalled around its 200 DMA, although generally speaking the technical picture is quite bullish in the daily chart, as the technical indicators present strong bullish slopes well above their mid-lines.”

“The 100 DMA stands at 121.70, providing an immediate resistance for the upcoming sessions. Shorter term, and according to the 4 hours chart, the bullish potential is also firm in place, as the Momentum indicator continues heading north, despite being in extreme overbought levels, whilst the RSI indicator consolidates around 77. “
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Source:: FX Street