USD/JPY: Follow through demand at the Tokyo open
Currently, USD/JPY is trading at 101.98, up 0.02% on the day, having posted a daily high at 102.01 and low at 101.77. At the Tokyo open, the dominant theme has been to sell the Japanese Yen, as the risk appetite extends, tracking solid gains in Wall Street.
USD/JPY technical outlook
Valera Bednarik, Chief Analyst at FXStreet, notes: "The pair remains a handful of pips below its weekly opening, having been confined to a tight 120 pips range ever since the day started. In the short term, the 1 hour chart shows that the price has accelerated through its 100 and 200 SMAs, whilst the technical indicators head sharply higher nearing overbought territory."
In the 4 hours chart, Valeria adds: "The upward potential seems limited, given that the price is well below its 100 and 200 SMAs, both converging around 103.40, whilst the technical indicators have extended their recovery from oversold levels, but remain below their midlines. The weekly high has been established at 102.65 the level to surpass to see further recoveries, up to the mentioned 103.40 price zone."
What price levels have to be considered for the current session?
Current price is 101.98, with resistance ahead at 102.01 (Daily High), 102.07 (Yesterday's High), 102.35 (Daily Classic R1), 102.45 (Weekly High) and 102.74 (Daily Classic R2). Next support to the downside can be found at 101.96 (Daily Open), 101.83 (Hourly 100 SMA), 101.80 (Weekly Classic PP), 101.77 (Daily Low) and 101.68 (Daily Classic PP).
What to expect in Gold as a proxy of USD/JPY?