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The US dollar continued to stay on the top and traded higher against most major currencies including the Japanese yen. There was a solid buying interest noted for the US dollar, as the pairs like EURUSD and GBPUSD took a hit. The USDJPY also continued to trade higher, but the momentum was simply not there. However, that does not mean that the pair cannot head higher. There are a couple of economic releases lined up in the US today as mentioned in the previous post. We need to see whether the US initial jobless claims decline or not. Any major decline in the jobless claims might help the USDJPY pair in the near term.

There is a critical bullish trend line formed on the hourly chart of the USDJPY pair, which could act as a support to the pair if it moves lower from the current levels. There is one more bullish sign to note from the charts, as the 100 hour moving average is also sitting just above the highlighted trend line and coinciding with the 38.2% fib retracement level of the last leg from the 118.66 low to 120.25 high. The pair is currently trading around a critical resistance area so there is a chance of a move towards the 100 hour MA. The hourly RSI is well above the 50 level, which is a positive sign in the near term for the pair.

If NZDUSD pair moves higher from the current levels, then a break above the 120.00 level might take the pair towards the last high of 120.25.

Overall, one might consider buying dips in the USDJPY pair as long as it is trading above the 100 hour MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com