FOMC's meeting Minutes and
the soft figures on durable goods orders in USA hurt USD/JPY and the pair
dropped to 111.15, - 1.14% for the day and thus marked a fresh new two-months low. Technically
speaking, the short term outlook remains bearish. On the four hour time frame
the price is placed well below its moving averages, having bearish 20-day SMA
and flat 100-day and 200-day SMAs. Stochastic has reached extreme oversold area
and is showing strong downward slope. RSI is located slightly below 30 level
and is also displaying bearish momentum. As seen on the same chart the price
finds support at the 50% Fibonacci retrŠ°cement of latest September to early
November bullish run around 111.00. The risk leans to the downside and in case
the pair crosses to below above mentioned level, doors are opened for testing
next support area around 110.90 (the unfilled gap from early September).
However, tomorrow will be a calm day due the Thanksgiving day in both US and
Japan and no significant moves are expected, but on Friday are due
Manufacturing PMIs and the pair is going to resume its movement.
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