USD/JPY-Bulls have made a fabulous come back in the game
Overiview :-From past couple of days we are witnessing very narrow range move in the pair and the way pair is moving on it seems like tug of war is going on. Till yesterday pair has made a low of 107.76 level but then bulls have made a fabulous come back in the game. Well the bulls started so well but let’s see will they continue in the game or not, because these levels are too crucial.
Technical Analysis:- From technical prospective we can see that on daily chart bulls are taking support from an uptrend line. We will keep our view bullish on the pair as long as uptrend line remains intact. On hourly chart a potential rounding bottom pattern has been formed which means like bulls are going to test the 1.09.60 level once again.The 109.70 level seems as too strong resistance level but we need a clean sweep of this level to arrive at 111 level in near term. This week’s closing matter a lot. Well the way bulls are reacting it seems like bulls will arrive at this level in near term. . A overlapping crossover on the MACD indicator is generating neutral signal for the time being and RSI is also favoring the bulls for the time being. Presently pair is trading above all the major and minor EMA lines which is providing strenght to the bulls.
What next:- Odds are in favor of bulls. Intraday bias remains bullish on the pair as long as 107.50 level remains intact. A daily closing above 109.70 level will open the way towards 111.00 level and furthermore in near term.The 107.50 is immediate support level followed by 107 level whereas 110 level is immediate resistance level followed by 111.
Trade idea:- Based on chart and studies above we would recommend that one should go for long around 108.40-30 level for the target of 109.60 and 110.30 sl is 107.50 level.
