Overview:
USDJPY is consolidating in higher range after hitting the high of 90.20 after 2010. The upward movement is supported by better than expected US household and initial jobless claim data. Daily chart is showing bullish bias, MACD is bullish, stochastic is bearish with overbought. RSI is at 58 above its neutrality area. USDJPY is also affected by the weaker demand of YEN where China's 4Q GDP growth showed the weakness. Pair will continue its upward trend as far as it does not break the 89.35 level. Above that it is expected to break 91. But if pair managed to break below 89.3, look for further weakness and target 88.
Preference:
Buy above 89.35 with targets at 90.3 and 90.65 in extension.
Resistance levels:
R1 - 90.3
R2 - 90.65
R3 - 91
Alternative scenario:
Sell below 89.35. Below 89.35 look for further downside with 88.9 and 88.3 as targets.
Support levels:
S1 - 88.9
S2 - 88.3
S3 - 88
Technical comment:
The pair stands above its new support (former resistance which became support) and remains on the upside as the RSI stands above its neutral area.
