03/03/2015 USDJPY breaks above 120.0


D1

The D1 chart shows a high a ranging small candle with a close with a slight bullish action to the north closing above 120.0 when the USD ISM Manufacturing PMI News was released. The price level is now reaching the previous resistance levels of 120.4 . The 80 / 120 / 200 EMA is closing in onto the candles but they are still pointing up, which indicates a bullish trend. the strong resistances of 122 and 120.4 still exist and has not been broken yet. the ADX is now gaining in trend strength which shows that this bullish movement is in full swing.

H4

The H4 chart shows a high at 120.4 and a possible movement to the previous resistance at 120.4. the 20 / 50 EMA is now above the 200 EMA and pointing upwawrds, which shows a strong bullish movmenet and with several tests to the 200 EMA, we can expect this pair to move up to 120.4 and above shortly. the ADX is showing a gradual increase in trend strength and the previous resistance of 119.75 has now become a support for the USDJPY pair. the Stochastic Oscillator is now in the oversold region but it has not hooked down for significant period of time, which indicates the waiting of a retracement that is impending. Sellers can wait for such a retracement for entry.H1

The H1 chart shows the movement in the news release clearer with a strong bullish action after the news release. with an fibonacci expansion it is likely to show a retracement at 120.3. the Trad MACD is pointing strongly upwards and has cut the red line at the 0 level which indicates a bullish action. the 20 / 50 EMA is above the 200 EMA line as well but ADX is subpar at best with a lowering in trend strength. This indicates that this bullish action may be short lived.

Good luck traders, fro those who are waiting for NFP, be sure to check out more technical analysis tomorrow and always use stop losses!

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