The Japanese Yen reached the price levels of January 2017, registering an annual high at 115.51. Having hit the strong resistance of +2/8 Murray, USD/JPY is making a technical correction. Right now, it is trading at 114.89 with a bearish bias.
The US dollar has been strengthening as investors anticipate that the US Federal Reserve will raise interest rates earlier than other central banks as soon as mid-2022. The yen is likely to continue its weakness in the medium term, but a technical correction is expected first.
The short-term outlook continues to be bullish as long as the pair remains above the 200 EMA located at 113.71. Any pullback will be considered a technical correction and it could be a good opportunity to continue buying the yen in the coming days.
Our trading plan is to sell below 115.11 with targets at 114.20 and up to 113.71(200 EMA). A consolidation above +1/8 of murray located at 114.06 will be a signal to buy the yen again with targets at 115.62 (+2/8).
On November 24, the eagle indicator reached the extreme overbought level around 95-points. Consequently, the yen is expected to drop below the 21 SMA located at 115.11 with targets towards 114.20 and up to the 200 EMA at 113.71.
A technical bounce around the bottom of the uptrend channel or at +1/8 murray at 114.06 will be a good opportunity to buy back the Japanese yen.
Support and Resistance Levels for November 26 - 29, 2021
Resistance (3) 115.62
Resistance (2) 115.43
Resistance (1) 115.11
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Support (1) 114.79
Support (2) 114.18
Support (3) 114.06
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A trading tip for USD/JPY November 26 - 29, 2021
Sell below 115.11 (21 SMA ) with take profit at 114.20 (uptrend channel) and 113.71 (200 EMA), stop loss above 115.45.
The material has been provided by InstaForex Company - www.instaforex.com