USD/JPY- Trading In An Upward Channel
AvaTrade | Apr 22, 2014 06:55AM ET
The USD/JPY is trading in an upward channel on a 60 minute time frame. If the price breaks this upward channel, then the lower line of this channel will become the resistance for the pair. The price has pierced the Bollinger band which represents an increase in the volatility for the price. The piercing of the Bollinger band does have a significant importance when this takes place at an important level of support or resistance because this could reverse or pause the current trend.
The RSI is trading in line with the price action which means that the bias could still be to the downside. The ADX indicator is clearly showing that the price is trending as the pink line trading above the 35 but it also indicates that the reversal could also be on the cards soon as the –DM (shown in red) is near its high zone.
Important Zones
Resistance Zone
103.27- 103.04 Minor Support
104.11- 103.83 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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