Saturday, 10 June 2017

USD/JPY Retreated from the weekly high and closed lower

On Friday the USD/JPY climbed to its highest level for the last three days at 110.70, but during the American session dropped, erasing most of the gains and lower at 110.30. 

On the four-hour time frame the price is moving below the 100-day and 200-day SMAs and the 100-day SMA is acting as a dynamic resistance, currently being at 110.90.
RSI and stochastic retreated from the extreme overbought area, although remain above their  mid-lines and are displaying bearish momentum.
The pair is facing strong resistance at 61.8% Fibonacci retracement of latest April to May up leg at 110.50. Should the pair succeed to break above, we have chances to see bulls back. 
Next week the pair will be quite vulnerable having the Federal Reserve meeting on Wednesday and the Janet Yellen’s press conference. A rate hike is expected and so there will be huge impact on the currencies.




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