USD/JPY Reversed As Expected!
USD/JPY has finally turned to the upside signaling that the downside movement is finished. Is traded at 103.77 level at the time of writing and it seems determined to hit new highs in the upcoming hours.
The USD has managed to rebound even if the United States ADP Non-Farm Employment Change was reported at -123K in December. The pair will jump way higher if the JP225 and the USDX will increase.
Today, the greenback received support from the Unemployment Claims and from the ISM Services PMI indicators. The economic data has beaten expectations, so USD could continue to appreciate ahead of the NFP.
USD/JPY Larger Rebound?
USD/JPY has rebounded from the Falling Wedge’s downside line and now is pressuring the R1 (103.77) level. The rate has recovered after the last downside movement. Still, only a valid breakout above the downtrend line will really validate a broader growth.
Confirming the Falling Wedge pattern makes USD/JPY very attractive for buyers. Closing and stabilizing above the downtrend line indicate a bullish reversal, swing higher.
Buy USD/JPY after a valid breakout (close, retest) above the downtrend line and through the lower median line (lml) of the ascending pitchfork. The median line (ml) of the ascending pitchfork could be used as an upside target.
The material has been provided by InstaForex Company – www.instaforex.com