USD/JPY: rallies to test hourly 200 SMA again, breaking up

By FXStreet FXStreet (Guatemala) – USD/JPY remains capped in the Tokyo open by the 200 SMA that has acted as a key resistance during the recovery in Global stock prices.

USD/JPY testing 200 SMA on stocks

USD/JPY rallied prior to the open in Tokyo on the back of gains in the Nikkei 225 futures while the index is currently up 3.2% at time of writing and above the 18,000 level. This is following a strong close on Wall Street while markets expect continued intervention by Chinese authorities to avoid a hard landing in the economy and support it with further stimulus after the poor trade figures yesterday.

Today, we are riding the stock markets once again and regarding the 200 SMA as a key resistance that, if broken with hourly closes, opens-up the 200 DMA at 120.80 as next big level. For the major, we await the outcome of the FOMC meeting on the 16th and the interest rate decision on the 17th.

USD/JPY daily MACD looking bullish

The key 120.80/00 level remains a force keeping pressures to the downside on a technical picture, and is a key resistance, aligning with the 200 DMA. On further supply and a low of the 119 …read more

Source:: FX Street