And we were right

A few weeks ago we identified on the daily chart of the USD/JPY a “Golden Cross”, which involves the crossing of the 55 day EMA, purple line, above the 200 day EMA, blue line. The golden cross usually has bullish implications for the instrument in the long run and that is why we have seen the USD/JPY making higher highs. The bullish trend is still in place and the angle of inclination of the 55 day EMA is telling us that the trend is still strong. If the pair breaks above the 116.12 level, then it may try to go and visit the 117.00 zone. To the downside, the pair may try to retrace back, but the 114.00 level may act as its first support. Below that level, the USD/JPY may just go and visit the 111.00 area.