Technical Analysis – USDJPY sees near term risk skewed to the downside
January 11, 2018 7:26 am
USDJPY has turned more bearish in the near term after the break below the key 112 level and 200-day moving average yesterday to reach its lowest level in six weeks. Momentum is weak and the daily RSI is indicating a bearish bias after dipping below 50. Risk remains skewed to the downside until prices make a sustained move back above 112.
USDJPY is making a modest bounce in early trading today but there is scope for further weakness if there is a rejection at the 112 level, which is now seen as firm resistance. However, further downside may be limited as long as support holds at the key 111 level. A deeper decline would see prices target 108.
Since late September the pair has been trading in a range mostly between 111 and 114. In the bigger picture, the market does not have any clear direction and this lack of trend is indicated by the horizontal 50-day and 200-day moving averages. This could change if USDJPY breaks below 111 in the next few sessions.
USDJPY has turned more bearish in the near term after the break below the key 112 level and 200-day moving average yesterday to reach its lowest level in six weeks. Momentum is weak and the daily RSI is indicating a bearish bias after dipping below 50. Risk remains skewed to the downside until prices make a sustained move back above 112.
USDJPY is making a modest bounce in early trading today but there is scope for further weakness if there is a rejection at the 112 level, which is now seen as firm resistance. However, further downside may be limited as long as support holds at the key 111 level. A deeper decline would see prices target 108.
Since late September the pair has been trading in a range mostly between 111 and 114. In the bigger picture, the market does not have any clear direction and this lack of trend is indicated by the horizontal 50-day and 200-day moving averages. This could change if USDJPY breaks below 111 in the next few sessions.
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