USDJPY looks bearish on the daily chart as the pair has been carving out lower peaks and lower troughs since the beginning of 2014. After retracing 50% of the up-leg from the October 25 low (96.93) to the January 2 high (105.43), the pair rebounded off lows of 100.74 to reach the 38.2% Fibonacci retracement level of 102.20.
MACD dropped below the zero line which is a bearish signal. Momentum is weak as indicated by the RSI which has been declining since December 31 and is now in bearish territory at 44. Another bearish signal was given by the 20-day moving average which has crossed below the 50-day and is falling.
As long as USDJPY remains below the 23.6% Fibonacci level at 103.40, the outlook remains bearish in the medium term. This 103.40 level will act as important resistance since the 50-day moving average is currently at this level.
To the downside, the 100-day moving average will act as an important support level as will the 50% Fibonacci level of 100.15.
USDJPY looks bearish on the daily chart as the pair has been carving out lower peaks and lower troughs since the beginning of 2014. After retracing 50% of the up-leg from the October 25 low (96.93) to the January 2 high (105.43), the pair rebounded off lows of 100.74 to reach the 38.2% Fibonacci retracement level of 102.20.
MACD dropped below the zero line which is a bearish signal. Momentum is weak as indicated by the RSI which has been declining since December 31 and is now in bearish territory at 44. Another bearish signal was given by the 20-day moving average which has crossed below the 50-day and is falling.
As long as USDJPY remains below the 23.6% Fibonacci level at 103.40, the outlook remains bearish in the medium term. This 103.40 level will act as important resistance since the 50-day moving average is currently at this level.
To the downside, the 100-day moving average will act as an important support level as will the 50% Fibonacci level of 100.15.
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