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Technical Analysis – USD/JPY

USD/JPY Daily 15 FEB 2018 | EconAlerts

FXG-FEB-LC-IB-728x90-EN | EconAlerts

USD/JPY edges sharply lower below symmetrical triangle; records fresh 15-month low.

USD/JPY dipped sharply lower on Wednesday, while it posted the third red day in a row and created a new 15-month low of 106.29 during today’s Asian session. The aggressive bearish rally started after the fall below the 50.0% Fibonacci retracement level near 108.80 of the up-leg with the low of 98.96 and the high of 118.60 and drove the price below the symmetrical triangle, which has been holding since May 2015. A weekly close below the triangle could reinforce the downside pressure.

Short-term momentum indicators in the daily timeframe are also pointing to a continuation of the bearish bias. The Relative Strength Index (RSI) slipped below the 30 level and is challenging the oversold zone. Also, the MACD oscillator recorded a downside crossover with its trigger line with strong momentum, suggesting further losses.

If prices continue the sharp sell-off, immediate support could come at 105.50, which is taken from the high in October 2016. It is worth mentioning that the price has just hit the 61.8% Fibonacci retracement level near 106.50 and is ready to break it to the downside.

Conversely, in case of an upward correction, the pair needs to go through the medium-term ascending trend line and the 108.20 resistance level. A jump above the aforementioned levels, the price could open the door for the 110.50 level.

USD/JPY Daily 15 FEB 2018 | EconAlerts

 

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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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