USD/JPY breaches channel up

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 31% 35% -12.90%
Shorts 69% 65% 5.80%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Sell Neutral
Stochastic (5; 3; 3) Neutral Buy Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

Contrary to expectations, the US Dollar failed to overcome the 114.50 level on Tuesday. As a result, the American currency was driven by strong downside risks until Wednesday morning when the weekly PP and the 200-hour SMA circa 113.40 were reached. In case the US Dollar breaches the latter and reverses near the 113.10 mark, it will confirm the existence of a broadening wedge pattern. From technical point of view, the rate should try to form retracement from the bottom channel boundary in the 113.80/114.00 area. Thus, it is more likely that the rate tests the monthly R1 at 113.94 and remains slightly below the given level until Wednesday morning. Nevertheless, traders should be very attentive in this session due to important fundamentals that are likely to pressure the rate.

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