By Russell Glaser – The USD/JPY is currently moving towards its recent high of 84.40. A close above this level shows limited resistance until the September high. Long term time frames also signal a continuation of the move.
Following the pair’s breach of the long term downward sloping trend line (1) on the daily chart the pair has risen to the 84.40 level (2). Clearly defined support and resistance levels appear on the chart and a buy signal is supported by a long term technical sign.
An entry long may be initiated with a move above the 84.40 (2) level targeting the post intervention high at 85.90 (3). Further resistance at 88.10 (4) can be used as a long range target as resistance is lacking on both the daily and longer time frame charts. A long term downward sloping trend line on the weekly chart (not shown) may also provide resistance at 88.60.
Support can be found at both 83.45 (5) and 82.30 (6), as well as the rising trend lines off the October and November lows.
The monthly chart provides a hint at the potential long term future price action with a rising stochastic oscillator.
Forex Market Analysis provided by ForexYard.
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