MICRO USD/JPY Futures (E71!), H4 Potential for Bullish Momentum
Type : Bullish Rise
Resistance : 138.65
Pivot: 135.31
Support : 130.00
Preferred Case: On the H4, with prices moving above the ichimoku indicator, the MACD histogram is above zero and the RSI moving along the ascending trendline, we have a bullish bias that price may rise from the pivot at 135.31 where the 61.8% fibonacci retracement is to the 1st resistance at 138.65, where the swing high is.
Alternative scenario: Alternatively, price could break pivot structure and drop to the 1st support at 130.00 where the swing low support is.
Fundamentals: The latest monetary policy statement from the Bank of Japan indicates that the BoJ will continue holding short-term policy interest rates at -0.10% and purchase 10yr JGBs with no upper limit. The BoJ’s commitment to an ultra-loose monetary policy continues to diverge from the other central banks’ path of monetary policy tightening, leading to expectations for the Yen to continue weakening against the other major currencies.
Resistance : 138.65
Pivot: 135.31
Support : 130.00
Preferred Case: On the H4, with prices moving above the ichimoku indicator, the MACD histogram is above zero and the RSI moving along the ascending trendline, we have a bullish bias that price may rise from the pivot at 135.31 where the 61.8% fibonacci retracement is to the 1st resistance at 138.65, where the swing high is.
Alternative scenario: Alternatively, price could break pivot structure and drop to the 1st support at 130.00 where the swing low support is.
Fundamentals: The latest monetary policy statement from the Bank of Japan indicates that the BoJ will continue holding short-term policy interest rates at -0.10% and purchase 10yr JGBs with no upper limit. The BoJ’s commitment to an ultra-loose monetary policy continues to diverge from the other central banks’ path of monetary policy tightening, leading to expectations for the Yen to continue weakening against the other major currencies.
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