President Obama first joint session of Congress

A strong bullish candle yesterday reaffirms the long term double bottom with the first base forming in December last year and the second base in January this year. The break of the resistance level at 94.60 at 3:00 GMT propelled the cross to reach a higher level almost uninterrupted. A bullish candle with close above the pivot point indicated a bullish sentiment today with the low expected at pivot point/S1 and the high at R2.

In the morning Asian session, prices are expected to inch downward as yesterday US session was bullish early on before tapering in the second part of the session. Despite it was reported at 0:46 GMT that  Japan posted a trade deficit of 952.6 billion yen ($9.92 billion) in January, its largest ever but  was lower than the 1.13 trillion yen expected by economists, the yen did appreciated against the dollar. The USDJPY was at 96.40 (1:15 GMT) in Asia, compared with 96.90 at New York closing.

At 1:15 a morning star candle appeared and prices went flat at the lower BB with support from the 50 ema. One and half hour later President Obama addressed his first joint session of Congress and spoke frankly about the challenge facing the US economy and detailing proposal to turn it around. The US dollar take the cue from his speech and strengthen against all major currencies.

USDJPY first broke the key resistance at 96.80 and than the double zero level of 97.00 before touching the high of 97.32 at 5:45 GMT.

See the 15 min USDJPY chart below.