107 for the USD/JPY

The USD/JPY continues its rally and reaches the 107.00 level where it is trying to stall at the moment. Usually, those round number levels tend to act as support or resistance zones, but the bullish momentum on the pair is such that it may break it to the upside and continue towards the 109.00 level. The better than expected earnings reports out of the US is making the Dollar rally. With a rise in risk appetite, the Yen suffers and falls, hence the bullishness on the USD/JPY. In case of a bearish pullback, the pair may retrace to the 55 day exponential moving average, purple line, around the 105.41 level. If such scenario develops, then the pair may form a breakout-pullback pattern around the 55 day EMA.

Follow up on the Dollar index

Possible bullish breakout of the ascending triangle or flag that we identified on the daily chart of the USD/JPY. The pair breaks above the 96.84 level and if it continues rallying it may get to the 98.59 level. The golden cross of the 55 day exponential moving average above the 200 day exponential moving average is almost complete. Such cross has bullish implications. If the pair goes back below the 96.84 level, it could leave behind a false breakout and it would go back to the congestion zone. Inside the consolidation there are no clear entries, but we could get a breakout and pullback pattern, which could give us a long entry. We will stay attentive.

Flag on the Dollar index

We can see on the daily chart of the Dollar index that it has been consolidating above the 200 day exponential moving average, around the 95.71 level, forming what it appears to be a bullish flag or an ascending triangle. The resistance of the formation is at the 96.84 level, where the pressure is rising to the upside. A break out of that level to the upside may cause the index to rally towards the high at the 98.59 level. The support of the formation is at the 95.34 level and a breakdown of that level could take the index to the low at the 93.00 level. Lastly, a bullish cross of the 55 day exponential moving average, purple line, of the 200 day exponential moving average may confirm a continuation of the bullish trend.

The USD/JPY is still consolidated

The USD/JPY is still oscillating around the 55 day exponential moving average, purple line, around the 105.41 level. From this level the pair may head in any direction, but the consolidation may act as a continuation pattern or a resting point to continue going higher. The next resistance on the daily chart may be the 107.00 level or the 109.00 level, but a much important resistance level is the 111.00 zone along with the 200 day EMA, blue line. To the downside we have a support zone between the 103.00 and the 104.00 level. The 100.00 level continues being its most important support.

The USD/JPY stalls its rally

The USD/JPY has been rallying lately as the risk appetite keeps growing in the markets and it is making the Yen less attractive as a safe haven currency. On the daily chart we can see how the price rallies to the 55 day exponential moving average, purple line, around the 105.41 level and stalls there. The price may try to bounce to the downside from here and if it does so, it may try to go and visit the 104.00 level or the 103.00 level. Below the 103.00 level, the next support could be the 100.00 level. To the upside, the next resistance above the 55 day EMA could be the 107.00 level or the 109.00 level.

Good pullback on the EUR/JPY

The EUR/JPY retraces to the 55 day exponential moving average, which is currently at the 118.00 zone. On the daily chart we can see that the 55 day EMA has acted as a good resistance in the past; therefore, it is possible to see a bearish bounce from this level. If the prices continues falling, then the first support could be the 114.82 level, followed by the 111.00 level and much lower the 109.37 level. To the upside, above the 55 day EMA, the first resistance could be the 122.00, followed by the 200 day EMA, blue line, around the 123.96 level.

The GBP/JPY reaches the expected resistance

The GBP/JPY has been rallying since yesterday as shown on the daily chart and today it reaches the 139.00 round number level. From this point the pair may give us an opportunity to enter either to the upside or to the downside. If the price breaks to the upside, it may try to go and reach the 146.00 level, but to open a buy position we must be patient and wait first for confirmation of the breakout in the form of two or three bullish candles above the 139.00 level and then wait for the pullback to the same 139.00 level for a buy entry. If the price bounces to the downside from the 139.00 level, then it may fall to the low at the 128.67 level, which could act as support.