24 August USDJPY Technical Outlook: Could the pair extend the rally further?


The USDJPY is reporting gains for the fourth straight day, having hit a three-week high of 111.49 a few minutes ago. However, looking at the chart, could the pair extend the rally further? Look for the answer in the following 24 August USDJPY Technical Outlook.

24 August, OctaFX – The currency pair bottomed out at the ascending (bullish) 100-day moving average (MA) support earlier this week as the probability of the Fed rate hike in December rose back above 60 percent after the Fed minutes showed the policymakers are set to follow the path of gradual policy tightening.

USDJPY Fundamental Highlights

Further, the minutes also revealed growing concerns among official over how trade war will impact the economy.

However, the USDJPY’s ascent indicates the investors are expecting the Fed head to sound hawkish during his speech at the Jackson Hole Symposium, scheduled later today.

However, if Powell stresses more on the negatives laid out in the minutes, then the USDJPY could drop sharply.

24 August USDJPY Technical Outlook

Technically speaking, the pair looks set to extend the rally further. As seen in the daily chart below, the pair closed above the confluence of falling trendline and 50-day MA yesterday, signaling a bearish-to-bullish trend change.

It essentially means the doors have been opened for a re-test of the recent highs above 117.00.

Only a close below the 200-day MA of 109.82 will likely embolden the bears.

Daily chart

Disclaimer

This article about 24 August USDJPY Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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