Technical Analysis – USDJPY rises but still in negative territory
USDJPY remains below 200-day SMA and uptrend line
RSI ticks higher reflecting the latest move
USDJPY is gaining some ground after three consecutive red days and losing around 3% from the 149.50 resistance level. The market has been trading beneath the long-term ascending trend line since the downfall at the beginning of August and more importantly is holding below the 200-day simple moving average (SMA).
Switching to technical oscillators, the MACD is holding in the negative region but rose above its trigger line, while the RSI is pointing upwards, mirroring the latest upside move.
If the market overcomes the 23.6% Fibonacci retracement level of the down leg from 161.94 to 141.60 at 146.45 then may find first resistance at the 20-day SMA currently at 148.20 before challenging the previous peak at the 38.2% Fibonacci of 149.50.
Alternatively, a drop below the 145.15 immediate support could drive traders until the more-than-seven-month low of 141.60 and the 140.20 trough, achieved on December 28.
Summarizing, USDJPY has been demonstrating a descending movement, especially after the break of the 200-day SMA, and only a climb above the 61.8% Fibonacci mark of 154.20 could change the outlook back to a positive one.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
