The US dollar outperformed against JPY 0.65% reaches the supply zone again. The price action climbs back above 20DMA and has erased a week’s falling pattern. Last week’s losses were completely erased but potential supply zone is the risk to the dollar bulls.
Before NFP (Sep) data we advised a buying trade on the dip with sl 110.50. As of now, the trade generated decent gains, further, could expect if the seven-month descending trend (blue) line taken out seems at 113.70. In this case, 114.50 and 115.40 are the initial targets.
Support moves to 112.20/112.00, 111.50 and 111.00. Medium term support finds at 109.50. We believe the uptrend remains intact until holds the 109.50. The daily oscillator turns bullish.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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