Technical Analysis – USDJPY bullish but over-extended
December 3, 2013 11:54 am
USDJPY remains strongly bullish in the long term. On the daily chart, the pair hit a new 6-month high of 103.36 yen today, with key resistance being the May 22, 2013 high of 103.72.
A break above this key level gives scope for the next high that was in August 2008 at 110.66.
A correction is expected ahead of this level though as technical indicators suggest the pair is over-extended after such a strong rally in November. The RSI is above 70 while the stochastics are above 80.
A pullback could see the pair fall down to support at 102.20 which was Monday’s low. A downside break of this level will open the way for support at 101.10 which has been tested a few times and is the 23.6% Fibonacci of the move from the June 2013 low to the current high.
USDJPY remains strongly bullish in the long term. On the daily chart, the pair hit a new 6-month high of 103.36 yen today, with key resistance being the May 22, 2013 high of 103.72.
A break above this key level gives scope for the next high that was in August 2008 at 110.66.
A correction is expected ahead of this level though as technical indicators suggest the pair is over-extended after such a strong rally in November. The RSI is above 70 while the stochastics are above 80.
A pullback could see the pair fall down to support at 102.20 which was Monday’s low. A downside break of this level will open the way for support at 101.10 which has been tested a few times and is the 23.6% Fibonacci of the move from the June 2013 low to the current high.
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