USD / JPY Technical Analysis Dec 6

Will the USDJPY pair rise above the 114.15 level?

The U.S. dollar and the Japanese yen are lately oscillating within an upside formation between the range of 113.36 and 114.15 respectively.

The bulls are now exerting pressures in their attempts of taking control over the price, and holding the pair close to the 114.15 level.

Probable Scenario

In the scenario where the USDJPY breaks above the 114.15 area, the price could escalate as high as 115.48, Fibonacci’s 261.8%.

The Stochastic oscillator indicates that the pair has greater chances of appreciating to upper levels at the 50 zone.

usdjpy-dec-6-2016

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 113.36 area, the pair could decline as low as 112.05.

Today’s Major Announcements

  • The Trade Balance (Oct) and the Factory Orders (MoM) (Oct) releases are expected to have a medium influence on the U.S. dollar
  • There are no any major releases that could have an impact on the Japanese yen

Synopsis

·         Probable trend (Bullish): 114.15

·         Bullish take profit target: 115.48

·         Stop loss target: 113.36

·         Alternative trend (Bearish): 113.36

·         Bearish take profit target: 112.05