By Mohammed Isah of fxtechstrategy.com
: The pair breached its Nov. 4 high of 91.31 on Tuesday and now appears headed higher, toward 92.31, its Oct. 27 high.
There's also resistance at 92.22, the pair's 200-day exponential moving average.
If the pair can surmount these levels, it could target 93.85, where the channel top is located.
Our view is supported by the daily and weekly stochastics, which are bullish and pointing higher, suggesting further strength. Support is situated at the 91.31 level, the Nov 4 high. Below that, support lies at 90.77, the Dec. 4 high, where a reversal of roles may occur.
Further down, the next two support levels are 88.30, the Dec. 14 low, and 88.00, the Oct. 7 low. After those levels, support lies at 87.35 and 87.10.
On the whole, although the USD-JPY remains biased to the downside within its established weekly falling channel, it has now resumed its recovery started at the 84.80 level and is targeting further upside.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.