Technical Analysis – USDJPY remains in broad range; short-term bias turns neutral after fading recent rally
October 12, 2017 6:29 am
USDJPY remains rangebound since the beginning of this year although the recent bullish phase that took prices to the mid-113 handle has shifted to neutral as upside momentum ran out of steam.
The market appears to be finding support at the 200-day moving average (MA) and falling below 111.84 would mean a short-term top is in place at Friday’s 113.43 high.
The immediate risk is tilted to the downside with scope to target the key 111 level around the 100-day MA and the 38.2% Fibonacci retracement of the September-October rally. Further weakness from here has the potential to push prices down to 108.
A rise above the 114 level would shift focus back to the upside and help USDJPY break out of the broader range.
But the short-term bias remains neutral to bearish as trend indicators are essentially flat and MACD has faded its bullish momentum to a neutral one. RSI has turned back down. The overall alignment of the moving averages is bearish.
USDJPY remains rangebound since the beginning of this year although the recent bullish phase that took prices to the mid-113 handle has shifted to neutral as upside momentum ran out of steam.
The market appears to be finding support at the 200-day moving average (MA) and falling below 111.84 would mean a short-term top is in place at Friday’s 113.43 high.
The immediate risk is tilted to the downside with scope to target the key 111 level around the 100-day MA and the 38.2% Fibonacci retracement of the September-October rally. Further weakness from here has the potential to push prices down to 108.
A rise above the 114 level would shift focus back to the upside and help USDJPY break out of the broader range.
But the short-term bias remains neutral to bearish as trend indicators are essentially flat and MACD has faded its bullish momentum to a neutral one. RSI has turned back down. The overall alignment of the moving averages is bearish.
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