On Wednesday USD/JPY increased with 135 pips, recovering from earlier week's losses. The currency couple appreciated from 86.82 to 88.19 yesterday, matching the positive money flow sentiment at over +18%, closing the day at 87.84. This morning the dollar lifted slightly further against the yen, reaching 88.31.
On the 1-hour chart the upward channel is making renewal attempts, while on the 3-hour chart the upward channel is still intact. Break above today's top and nearest resistance 88.31 would encourage further recovery of the dollar. Immediate support is yesterday's bottom at 86.82, and consistent break below it could strengthen the yen further down towards next target 86.00.
Today are Japan Leading and Coincident indicators composite indexes, Current account, and Trade balance, at 5, and 23:50 GMT respectively.
Quotes are moving just above the 20 and 50 EMA on the 1-hour chart, indicating short-term slim bullish pressure. The value of the RSI indicator is positive and calm, MACD is positive and tranquil too, while CCI has crossed up the 100 line on the 1-hour chart, giving over all light long signals.
Technical resistance levels: 88.31 89.20 90.00
Technical support levels: 86.82 86.00 85.11
USD/JPY Chart" title="USD/JPY Chart">