FxWirePro: USD/JPY back above 117 handle, recovery in oil supports
USD/JPY saw an impressive 150-pips vertical rise from Wednesday's lows at 115.97 to session highs on the day at 117.45. USD bulls manages to regain control as risk-on sentiment returned to markets on the back of a recove…
USD/JPY saw an impressive 150-pips vertical rise from Wednesday's lows at 115.97 to session highs on the day at 117.45.
USD bulls manages to regain control as risk-on sentiment returned to markets on the back of a recovery in oil prices.
However, a much stronger yuan fix, keeps a check on the prices, recovery in the pair loses steam, pair now slightly lower at 117.27.
A close above 116.50 (strong trendline support) supports further gains, Technicals are turning positive.
After whiplashes around the 20 line, daily Stochs have managed to hold above and bounce off the 20 line on Wednesday, converge positively with RSI and MACD indicators.
Immediate support is seen around 116.66 (Jan 18 lows), while the next hurdle on the upside aligns at 117.43 (Jan 18 highs).
Recommendation: Wait for close above 5-DMA to go long
