Bulls gave all the power they had and
almost gave themselves one more chance. The last week USD/JPY pushed above the important resistance
level at 104.31. However, this upward movement was accompanied by bearish
divergence, shown by MACD, which hinted of bulls weakness.
The fundamentals now support the appreciation of the US dollar, which would mirror
the increase in this currency pair. The difference in the Fed’s BoJ’s monetary
policy will continue to influence the dynamics in the pair. The Bank of Japan
decided to keep its economic policy unchanged, but the yen react to the news
significantly.
Currently the USD/JPY pair fell to lower levels and pined intraday low at
103.787. As seen on the chart some further slides are very possible.
RSI is located in the oversold area, currently around 24%. Momentum is also
situated at the oversold territory and both indicators are displaying bearish
slopes.
Support is placed now at 103.50 and lower at 103.10. Resistance is seen at
104.20 and 104.62.
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