USD/JPY – Tide may have turned in favor of bulls

Daily Chart

USDJPY D1 (03-22-2016 2353).png

  • A rebound from 111/110 support has marked a triple bottom formation
  • Bullish price RSI divergence is noted on the daily charts as well

Prices are likely to test symmetrical triangle hurdle of 113.25, with subsequent acceptance above the same amid current bullish momentum indicating further gains are likely. That would push up daily RSI above 50.00 and bring in more technical buying leading to a break above symmetrical triangle ceiling and shifting risk in favor of rise to 116.00 levels.

Fresh offers could come-in at 116.00 since the level stands as the head and shoulder neckline breached earlier this year.

Overall, odds of a short-term bullish move to 116.00 are high. On the monthly timeframe RSI has just dipped below 50.00 and that too is likely to keep gains under check around 116.00 (H&S neckline).

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