By Kin Talk on Wednesday, January 29, 2014 with 19 comments
The Japanese yen keeps falling in trading today and the USD/JPY has moved above 103.00 as a result. After the moves made by the Turkish central bank sent the USD/JPY up to 103.43, forex traders are now looking forward to the Fed meeting later today for profit opportunities. With a taper expected, there is every chance that the USD/JPY currency pair could go above 104.00.
There is a bullish trend for the USD/JPY over the 15-minute, 1-hour and weekly time frame. However, technical indicators highlight a strongly bearish outlook on the daily chart. Anyway, I am looking to buy calls through the day today with various expirations except daily calls.
The USD/JPY near term resistance is likely to be at 103.58 (the January 24 high). Long-term resistance appears to be at 103.61. This point is the Kijun-Sen.
On the other hand, support is likely set at 102.49 (the January 28 low). If the pair dips under the 102.49 level, look for long-term support at approximately the 101.77 level.
Be Bullish on the USD/JPY
The technicals and fundamentals make me pretty confident trading calls on the pair!