USD/JPY- Bounced over 70 pips (risk 23 pips), What now?
AvaTrade | Apr 16, 2014 06:42AM ET
The USD/JPY pair has bounced strongly up from its support zone of (101.43-101.20) on a 60 minute time frame. The total move so far is almost 70 pips whereas the risk was 23 pips. The price is trading above the 50day (shown in green) and 100 day (shown in yellow) moving average, which means that the bulls are in control of the price action. Moreover, we also have the crossover of the faster moving average from below the slow moving average, which is also considered as a bullish signal.
The ADX indicator is also confirming that the uptrend has started and it is still intact. However, the RSI indicator is trading near the overbought zone, which means that the bias could be to the downside.
Important Zones
Resistance Zone
104.45-104.19 Minor Support
103.42-103.12 Major Support
Support Zone
101.44-101.20 Minor Support
101.00-100.71 Major Support
h3 Disclosure & Disclaimer:/h3The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader. by Naeem Aslam
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