USDJPY is approaching its highest level in the last 4 months after the bullish reversal bar formed at 102.00 on 8 Aug. The strong up move of US dollar was supported by a series of good economics data and FOMC minutes yesterday confirmed expectation of investors that the cash rate could be hiked sooner.
Currently, USDJPY is trading around 104.00, a key resistant area. With a strong bullish momentum after almost 4 months trading within a 200 pips range below 103.00, we expect USDJPY will break this level but it will take time.
Forex Trading Signals:
We will watch for signals to long USDJPY around 103.00 in line with the current strong bullish momentum for safer trading. If there is strong reversal signal around 104.00, we may consider to go short US dollar as well.
-102.00 – 102.350