USD/JPY - Profits of 135 Pips Booked - 02/10/2017 (GMT)

The U.S. dollar soared against the Japanese yen over yesterday’s session and surged more than 1% in just one day. For the past few sessions, traders have been waiting for USD/JPY to edge higher, out of the narrow range 111.60 – 112.60, and Trump’s comments for taxes drove the pair above our second recommended target at 113.80 price level, closing our position with more than 130 pips profit. (see technical analysis here: http://bit.ly/2kuENj3).

Thursday’s upward rally was the most aggressive run of the pair since the last U.S. elections. The pair surpassed significant obstacles to the upside, such as the 50 and 100 SMAs on the 4-hour chart, and the descending trend line that was holding since January 3rd. The next resistance level to watch is the 114.00 psychological barrier and the 200-SMA on the short-term timeframe near the 114.60 level. Technical indicators are confirming the recent bullish attitude. The RSI indicator is approaching the overbought area and is strengthening while the MACD oscillator entered the positive territory with strong momentum.