July 13 , 2018
In the last week we have mentioned in our report that bullish breakout of Ascending triangle pattern is on the cards and we proved it. Well this was a fabulous buying opportunity for buyers and they must have made smart profit from this profitable move. Not only this pair is moving up even all the pairs where JPY is a term currency are heading north side like EUR/JPY, GBP/JPY,AUD/JPY and the good thing is that we have buying in all the above mentioned pairs.
The JPY is fueled up due to trade war concern and a recovery in US Treasury yields, helped by the country’s inflation that posted its biggest annual gain since February 2009, also underpinned the rally. During the upcoming Asian session, Japan will release Capacity Utilization and Industrial Production figures for May, with the first since declining 1.2% and the second rising 6.0% annually. The upward momentum eased, but the pair is still in bullish territory, with a key support being now the 111.40 level, May’s monthly high.
A sharp breakout with two consecutive bullish marabuzo candlesticks which are full of bullish sentiments are generating further bullish signal. The way bulls are reacting it seems like they are approaching the 114.65 level in short term. By applying the fibonacci retracement line we can see that pair has retraced almost 38.2% level bounced back towards north side again. Presently pair is trading above the Exponential moving average and generating bullish signal.
The situation is favourable for bulls from other indicators and oscillators point of view. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 111.00 level remains intact. A bullish crossover on MACD indicator is supporting the bulls and RSI is also travelling above 50 level which is favoring the bulls from positive territory. The 110.50 is immediate support level followed by 109.00 level whereas 114.50 level is immediate resistance level followed by 113.50.