The quite US data and the stable treasure yields supported
today the Japanese Yen and moved USD/JPY towards 110.70, but however the pair is
about to close around 110.40.
Short term speaking from technical view point, the risk remains towards
downside. The price is currently developing slightly below the 61.8 % Fibo of latest
April to May up leg. The four-hour time frame is showing that the 100-day SMA
has crossed to below the 200-day SMA, whilst the 20-day SMA has turned to south
and all of them above the current price level.
Indicators are located within extreme oversold area with RSI close to 40 and
having lost directional strength, while stochastic close to lowest its level
and yet is displaying bearish signs.
Strong support is seen at 110.13 (50% Fibo of same retracement) and lower at 109.30
(April’s lows). Looking to the upside, the pair is capped by the 61.8% Fibo at
110.60. Bears are going to ease only if surpassing the 112.00 handle.
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