Wednesday 4 July 2018

USD/JPY Risk of bearish extention below 110.15


USD/JPY is trading lower today, down with 0.04% with current market price 110.50. The US dollar is losing strength as US Treasury yields and marking weekly lows while the Japanese Yen received a boost by the June Markit Services PMI.
Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing between its moving averages, all of them staying flat.
RSI stands around mid-line and lacks directional strength. Stochastic has retreated from its overbought readings and now is showing strong bullish momentum.
Strong support is located at 110.10 – 110.20, while the pair is pushing above the 100-day SMA, which is developing within this area but as mentioned above is staying flat and is looking for direction. In case bears succeed to make a breakthrough this level, then will gather strength to lead the pair towards 109.90 or lower at 109.50.


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