JPY Trading Outlook (21-07-2015)
Medium Term Strategy: Forex Pair of the day
USD/JPY – further advance
The pair has rebounded above the upper boundary of an Ascending Triangle. Moreover, the ascending 200-day moving average is coming in support and the daily RSI has reversed up above its oversold area. Therefore, as long as 120 holds as a support (former horizontal resistance now acting as a support and rising trend line in place since late 2014), targets on the upside are set at 126 (horizontal resistance) and 127.7 (theoretical target of the triangle). A third target is set at 132. Only a break below 120 would turn the outlook to bearish with a first alternative target at 118 (horizontal support) and 115.50 (December bottom) in extension.
