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  • USD/JPY looks north ahead of the critical US ADP data.
  • A bunch of healthy support levels holds the upside.
  • US dollar remains underpinned by the upbeat ISM PMI.

USD/JPY consolidates the Asian bounce above the 106 level in early European trading, as the bulls look forward to the US ADP employment data for fresh impetus.

The US dollar recovered losses from the dovish Fed fuelled sell-off seen last week, courtesy of the upbeat ISM Manufacturing PMI that hinted at improved US economic recovery.

Looking at the near-term technical outlook, the major remains tied down in a tight range just above the 106 mark on the hourly chart.

The hourly Relative Strength Index (RSI) trades flat line but comfortably in the bullish territory currently at 60.00.

Further, the price trades above all major hourly Simple Moving Averages (HMA), adding credence to the upside bias.

The spot finds strong support around 105.95 region, where the rising trendline support coincides with the 200, 20 and 100-HMAs.

A break below which the bears will attack the 50-HMA at 105.86.

Alternatively, the bulls need a decisive break above the rising trendline resistance at 106.18 to call for a test of the 106.50 level.

USD/JPY: Hourly chart

fxsoriginal

USD/JPY: Additional levels

 

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