JPY breaks resistance, positivity needs confirmations 13/10/2023

We adhered to intraday neutrality during the previous technical report due to conflicting technical trends, pointing out that confirmation of the USD/JPY pair breaching the resistance level of 149.30 is a motivating factor that strengthens expectations to visit 149.85, touching the target, recording its highest level of 149.83.

On the technical side today, we find the pair stable above the previously breached resistance-into-support at 149.30, and the 50-day simple moving average provides a positive incentive.

Although we tend to be positive, we prefer to witness the breach of the main resistance of the current trading levels 150.10/150.0 to confirm the continuation of the rise towards 150.40 and 150.80.

The stability and price consolidation again below 149.30 invalidates the activation of the bullish scenario. It leads the pair to the official path within a bearish correction procedure, with an initial target of 148.65 and extending towards 148.30.

Note: Stochastic is around overbought areas and we may witness fluctuation in the price until the expected trend is obtained.

Note: Today we are awaiting high-impact economic data issued by the US, “Preliminary Consumer Confidence Reading – Michigan,” and from the UK, we are awaiting a speech by the president of the Bank of England, and we may witness high fluctuation in prices at the time the news is released.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 149.20	R1: 150.05
S2: 148.65	R2: 150.40
S3: 148.30	R3: 150.90