The Dollar’s dominance continues, and no other chart appears to display this more than USDJPY at this moment in time.
Our London analyst Alex Simcock has extensively made references to the importance of this chart in relation to overall Dollar strength and discussed the all-important 112.00 level. I highly recommend you follow him for continued updates @Alex_GoMarkets , particularly as far as the Japanese currency is concerned.
Today I would like to view this chart via the Ichimoku cloud method to provide an alternative perspective. Note the critical element here is the overall thickness of the cloud on the hourly timeframe. As we can see, the current price action is not only battling with the resistance lined within the 112.00 zone but also within the cloud where there appears to be plenty of dynamic support (thickness).
Also, with the number of hourly candles displaying tall wicks to the upside, it could be some time before we see any price resolution at current levels. However, the lagging span (purple line) is still above the cloud, suggesting that the longer-term trend remains bullish, and if we do manage to break above this fierce resistance, there may be an abundance of momentum in favour of the market bulls and the ever strengthing US Dollar.
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Go Markets, Tradingview