Shinzō Abe must be smiling today. The FOMC announcement yesterday was just what the Yen needed to kick start another bull run. As a result, the Yen has cleared 97.00 in the last 2 hours of the Asian session and is currently trading at 97.048 +/-. The pair is looking bullish on all time frames and after a possible short term pullback that may occur during what traders call The Frankfurt Fake out (the hour before London markets open), there is a strong possibility that we might even hit 98.00 again before the closing bell in New York. Stochastic indicators placed on the daily chart are smashed, indicating that bears continue to be exhausted and bulls are taking control, but there is a resistance level at 97.10 as evidenced by the Monthly S1, Weekly R1 and Daily R1 all converging at the zone established most recently at the end of April. We also have the Daily 50EMA acting as resistance at 98.08 and highs from April in the 99.50 zone. If the bulls do take a break, look for support at 96.10 where March trading peaked and 94.50 where February found its highs.
Happy Trading