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Dollar/yen  topped the 114 level and with every pip, the pair records a new high for the year. Where next?

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch discusses USD/JPY technical outlook and  flags a bullish pattern underway with a scope of 118.80 on a clear break of 114.45.

“The weekly chart of USD/JPY has broken two thresholds of technical significance. Price action last week closed above the 200wk SMA for the first time in over a year and the weekly RSI is accelerating. Trend following conditions such as MACD and Ichimoku are in a bullish position.

We see resistance at 114.45 and breaking through that opens a higher path to 118.60. Given our view on US rates (broadly bearish and to sell a rally) it may be right to wait for a dip in USD/JPY to position for further upside,” BofAML notes.

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