USD / JPY Technical Analysis Dec 14

Will the USDJPY pair rise above the 115.18 level?

The U.S. dollar and the Japanese yen are lately oscillating within an aggressive upside formation, between the 113.11 zone and the 116.04 level respectively.

The bulls are now exerting pressures in their attempts of taking control over the price, and holding the pair close to the 115.18 level.

Probable Scenario

In the scenario where the USDJPY breaks above the 115.18 area, the price could escalate as high as 116.46, Fibonacci’s 261.8%.

The Stochastic oscillator indicates that the pair has greater chances of appreciating to upper levels at the 65 zone.

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 114.41 area the pair could decline as low as 113.11.

Today’s Major Announcements

  • The Retail Sales, the FOMC Economic Projections, the Fed’s Monetary Policy Statement, the Fed Interest Rate Decision, and the FOMC Press Conference releases will have a strong impact on the U.S. dollar
  • The Japanese Foreign Bond Investment (Dec 9) and the Foreign Investment in Japan Stocks (Dec 9) releases will likely have a medium impact on the yen

Synopsis

·         Probable trend (Bullish): 115.18

·         Bullish take profit target: 116.46

·         Stop loss target: 114.41

·         Alternative trend (Bearish): 114.41

·         Bearish take profit target: 113.11