FX.co ★ Technical analysis on USD/JPY for October 15, 2014

The pair fell back into the bullish flag in the weekly chart. The pair held the 38.2 fib level and started moving upwards. The pair has been facing resistance at the top end of the flag. Fresh buyers can start buying above 107.60 levels. On the upper side, above 107.60 it can fly up to 107.87, the 23.6 fib level, 108.25, 108.32 and 108.50, 20Dsma levels. In case the pair closes above the 23.6 fib level, it can gain some strength on a weekly basis. In case, if the pair closes above 108.50 20Dsma, the bulls can confront towards 109.23, 109.85 and 110.0 levels. In the daily chart, the trading pattern of the pair came out at the 8-day downward trend line, this represents the correction is going to end in the near term. This view becomes invalid, if the pair closes below 106.50, 38.2 fib level. The monthly support level is at 106.39 200M Sma.

For an intraday view, the prices are trading above 35DEMA and 12ema, but facing strong resistance at 21hrsma in the h4 chart. We recommend safe buying above 107.60 with targets at 107.87, 108.15-108.25 levels. Safe selling will be triggered below 107.00 for target at 106.84 and panic below this for 106.65 to 106.50 levels.

Trade-

Buying above 107.60

Selling below 107.00