During the the majority of the day USD/JPY was trading within a relatively tight range around 113.20,but in the last hour the pair rose to its highest level in 10 days at 113.43., breaking above both the 50-day and 200-day SMAs. In addition Momentum is positive and the pair is trading alongside an uptrend channel. The 113.75 level holds USD/JPY down since mid-November and is a substantial resistance. The downside offers 113.00 level as support line and also holds the pair down since earlier November.
USD/JOY is technically neutral in the four hours chart with technical indicators having retreated from oversold readings but holding nearby, and the price developing above all of its moving averages. Beyond 114.05, the pair has room to extend its advance up to 114.54, October high, while bulls could give up only on a break below 113.20.
The USDJPY finds a good resistance at the 114.00 level and bounces to the downside. If the pair continues dropping, then the 55 day EMA at the 112.89 level could act as support. Above the 114.00 level, its next resistance is at the 114.54 peak.
USD/JPY lost a handful of pips following the release of the FOMC minutes although lack of follow through and price clings at 113.45. The pair is currently trading in the 113.30 area and at risk of extending the slump, particularly on a break below the mentioned daily low of 113.20 that will dent bulls' determination.
The pair was indecisive yesterday and today, hitting 113.26, after the bullish momentum was dropped just under 114.20 - 114.70. Expectations are bearish for testing at 113.20/00. Resistance is 113.66 (current peak). A clear breakthrough and daily closure back over this region may take the price to a neutral zone with a retest of the strong resistance of 114.20 - 114.70, which remains a good place to sell. Downwards, a clear breakthrough and daily closure below 113.20/00 will direct the bear to the trendline support line and 112.50/00. This region remains a good place to buy.
The dollar rose to the yen on Friday. The pair USD/JPY increased by 0.07% to 113.68. In times of political or economic instability, investors prefer to invest in the yen, which is considered a defensive asset.
USD/JPY closed at 113.50 having limited potential for the upside. According to technical readings on the four hour time frame the price is barely holding above directionless moving averages, while the RSI aims marginally higher around 54 but the Momentum maintains the sour tone below its mid-line. Nevertheless, and as long as the pair holds above 113.20, the risk is skewed to the upside.
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