USD/JPY stands around 2-week low; bearish in short- and medium-term.
USD/JPY fell as low as 105.57 during today’s Asian session and reached a two-week low. Over the last three weeks, the pair is posting neutral sessions as it failed several times to jump above the 107.30 key resistance level but managed to hold above the 16-month low of 105.23. Price action is at the moment taking place not far above this low.
From the technical point of view, in the daily timeframe, the price hit the lower Bollinger band and rebounded on it, while it is trading below the 20-day simple moving average (SMA). The RSI indicator is sloping to the downside approaching the threshold of 30. Also, the stochastic oscillator is ready to create a bearish cross with the %K and %D lines.
For the time being, 106.00 holds as resistance for USD/JPY, but a move below the aforementioned 16-month low could open the way towards the next significant handle of 101.00 taken from the low of November 2016.
On the flip side, should an upside reversal take form, the next pause could be on the 40-day simple moving average near 107.20, which moves near the upper Bollinger Band before it touches the 107.30 level. A break above this area could shift the short-term outlook to a bullish one with the next resistance coming from the 23.6% Fibonacci retracement level at 108.40 of the down-leg from 118.60 to 105.23.
All trading involves risk. It is possible to lose all your capital
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.