USD/JPY ending US day + 0.58% on bid US dollar – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that USD/JPY rallied this Tuesday on broad dollar’s strength, advancing up to the 121.70 region, where it ended the day.

Key Quotes:

“Having erased all of its Friday’s losses, the pair advanced in anticipation of the US Federal Reserve announcement this Friday, as the Central Bank is largely expected to announce its first rake hike in over nine years. The pair was also helped by a recovery in stocks, as oil bounced and brought some relief to financial markets.”

“The technical picture is not yet confirming additional gains as in the daily chart, the pair has managed to recover above its 100 DMA, but the technical indicators remain below their mid-lines.”

“In the same chart, the 200 DMA acts now as an immediate resistance in the 121.90 region. Intraday, and according to the 1 hour chart, the upward potential is still strong, as the pair advanced well above its 100 SMA, while the technical indicators continue heading higher, despite being in overbought territory.

In the 4 hours chart, the Momentum indicator heads strongly higher above its 100 level, while the RSI indicator hovers around 54, favoring some further gains for the Asian …read more

Source:: FX Street