USDJPY Technical analysis 01.12.17

USDJPY

The pair is consolidating below 112.65 mark, it’s supported by the expectations of the passing of the tax reform in the US. But the growth may prove limited yet, if the reform isn’t passed.

The pair is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is above the overbought zone. Stoch are in the overbought territory.

Trading recommendations:

If the price passes 112.65 mark, it’s highly likely to continue going up to 113.25. But in order for that to happen there should be an optimistic piece of news, e.g. the US Senate passing the tax reform.