The US tax reform delay talks drove the equities in
the US lower, which reflected to the USD/JPY pair and today was seen hovering
around the weekly low at 113.08. Good support is provided by the 23.6%
Fibonacci retracement of latest September to October bullish run around 113.00
area and however so far the pair is cautions over there.
Technically speaking the short term
outlook for the USD/JPY pair remains neutral to bearish. On the four hour time
frame the price is developing below its 20-day and 100-day SMAs, while the
200-day SMA is providing support at around 113.08 (the weekly low).
Both RSI and stochastic and located below their mid-lines and are starting to
decline towards south.
The current market price is 113.27 and the
pair is poised to extend its decline in case of breaking the 113.00 handle and
further darting at 112.50-112.60. The upward momentum is limited by the 113.60,
but in case of fighting, bulls will be eyeing 114.05.
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