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Fan Yang

USD/JPY Pivoting Above 111.00; Looking Bullish on the 1H Chart (8/29)

When we looked at $USDJPY, we saw that price broke above some key resistance levels before retreating. We noted that USD/JPY was a buy-on-the-dip candidate. So far there wasn't a deep retracement, but rather a sideways one. Let's take a look at the price action in the 1H Chart.

USD/JPY 1H Chart

(click to enlarge)

Bulls in Charge:
- Not only did price broke above a couple of key resistance levels, USD/JPY looks bullish on the 1H Chart.
- As price consolidates, it is pivoting above the 111.00 mark. 
- Meanwhile, price is holding above the 200-hour simple moving average (SMA), and is now bouncing off the 100-, and 50-hour SMAs.
- Finally, the RSI has held above 40 after it previously was able to push above 70. This means that it is maintaining its bullish momentum at least in the short-term.
- Now, price is attacking a falling resistance. 
- I think price action is poised to push towards the 111.50 level with a good chance of breaking above.
- We noted in the previous analysis that there is upside towards the 114-114.60 area. 
- But we should first anticipate resistance in the 112-112.25 area, which was the August high and a resistance pivot.