USD/JPY is expected to trade with bullish bias above 104.65. The pair is rebounding strongly, and is now challenging its key resistance level at 106.80. The relative strength index is positive above its neutrality area at 50. Furthermore, the 20-period moving average is heading upward, and should continue to push the prices higher.
On Wednesday, U.S. stocks surged over 1% as the country appointed Donald Trump as its next president. The Dow Jones Industrial Average charged 256 points (+1.4%) to 18,589, the S&P 500 rose 23 points (+1.1%) to 2,163, and the Nasdaq Composite was up 57 points (+1.1%) to 5,251.
Health-care, banking and financial shares outperformed, while utilities and real estate sectors were under pressure.
The stock market’s performance was particularly impressive considering deep overnight losses in futures — S&P futures plunged 5% before a trading limit kicked in
Hence, as long as 104.65 is not broken, likely advance to 106.80 and 107.50 in extension.
Trading Recommendation: The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 106.80 and the second one at 107.50. In the alternative scenario, short positions are recommended with the first target at 103.85 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 102.90. The pivot point lies at 104.65.
Resistance levels: 106.80, 107.50, 108
Support levels: 103.85, 102.90, 102.40
The material has been provided by InstaForex Company – www.instaforex.com
The post Technical analysis of USD/JPY for November 10, 2016 appeared first on forex-analytics.press.