The
short-term outlook for USD/JPY has turned to downside as since the beginning of
March the pair marks lower highs. Mostly this bearish march is backed by the US
Treasury yields weakness and the recent strength in the Japanese Yen that largely
goes with the decline in risk sentiment.The
four hour chart is showing that currently the pair is sitting at a well defined
support channel. The prices continues to stay below the 100-day and 200-day
SMAs. RSI has retreated slightly from oversold area, while stochastic maintains
bullish slope. Meanwhile the daily chart is indicating exhaustion of both
indicators but yet displaying extreme oversold conditions.
109.90 is a critical level and a possible break to downwards will open doors
for testing 108.30–108.40 region. Yet the risk remains towards the downside.
No comments:
Post a Comment