Daily chart: The USD/JPY is in a clear bullish trend. Last week, the pair managed to break the resistance at the 98.25 level and now, it is getting closer to the next resistance level of 99.81. If the USD/JPY manages to break that resistance, it is expected to rise to the level of 100.94. On the other hand, if the USD/JPY does make a bearish rebound in this resistance, it is seen to fall back to the support at the 98.25 level. However, it is quite possible that the USD/JPY forms a lower high pattern. The MACD indicator is in positive territory and still shows no signs of overbought.
H4 chart: Finally, the USD/JPY managed to consolidate above the 200 day moving average and now this pair is trying to consolidate above the resistance at the 99.05 level. If the USD/JPY manages to break the bearish trend line at the 99.48 level, it is expected to rise to the level of 99.93. On the other hand, it is very possible that this pair will fall back to support at 97.00 level, but this could happen if the fundamental news become negative for the dollar this week. The MACD indicator remains in positive territory.
H1 chart: At current levels and below resistance at the 99.42 level, it is forming a Point of Control (POC). If the USD/JPY achieves in consolidate above this resistance and the POC, it is expected to rise to the level of 99.87. On the other hand, if the USD/JPY does make a bearish rebound in that resistance, it is likely to fall back to support at 98.85 level. The USD/JPY stays above the 200 day moving average and the MACD indicator is in overbought extreme and negative territory.
Fundamental outlook: For today's session will be published the ISM Manufacturing (Previous: 49.0 / Forecast: 50.6) at 14:00 GMT in the United States.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD/JPY pair breaks with a bullish candlestick, the resistance level is at 99.42, take profit is at 99.87, and stop loss is at 98.97.
