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12 Jul 2013
USD/JPY breaking higher from pennant
FXstreet.com (Barcelona) - Having spent most of yesterday and today forming an hourly pennant formation, USD/JPY is showing tentative signs of higher.
Moving into the final quarter of the pattern, volume noticeably dropped and aside from an overnight downside test, spot was restricted to a near 20 pip range. However, with the key 99.00 level providing stern resistance overnight and into the European morning, USD/JPY is showing signs of breaking higher from the pennant formation. Spot has broken out of the upper trendline, and is testing the upper hourly 2 standard deviation band. USD/JPY spot is currently trading at 99.33, at a daily high and clear of the pennant formation, but traders nonetheless will be watching for a confirmation close above. Looking to oscillators, we can see that hourly Stochastics are at 76 and pushing into overbought territory, while RSI is at 55 and moving with an upside bias.
Moving into the final quarter of the pattern, volume noticeably dropped and aside from an overnight downside test, spot was restricted to a near 20 pip range. However, with the key 99.00 level providing stern resistance overnight and into the European morning, USD/JPY is showing signs of breaking higher from the pennant formation. Spot has broken out of the upper trendline, and is testing the upper hourly 2 standard deviation band. USD/JPY spot is currently trading at 99.33, at a daily high and clear of the pennant formation, but traders nonetheless will be watching for a confirmation close above. Looking to oscillators, we can see that hourly Stochastics are at 76 and pushing into overbought territory, while RSI is at 55 and moving with an upside bias.