- Despite the risk sentiment, USD/JPY remains in the hands of the bulls that have committed to the support lines at 111.60/80 and 112 the figure.
- Bulls have been building a case for the upside since dragging the price out of the daily bearish channel and crossing back above the 61.8% and 50% Fibo retracement level with eyes on a test of the 21-D SMA and confluence of the 38.2%Fbo at 112.97.
USD/JPY is currently trading at 12.43 from a high of 56 and a low of 34 in the open today in Asia. However, there has been a bearish slant to Monday’s price action with the drop below the hourly 21- SMA at 112.47 following a weak performance in Friday’s stock markets as investors continue to fret over the FOMC hawkish minutes and the prospect of higher rates. At the same time, Chian’s stock markets have been taking their toll on Asia with major Chinese indexes at four-year lows. On the China front, the late November Trump-Xi meeting, if confirmed, will be pivotal.
It’s ‘oh so quiet’ – BUT… the week WILL pick up- Rabobank
USD/JPY levels
- Support levels: 112.10 111.65 111.30
- Resistance levels: 112.60 113.00 113.40
Valeria Bednarik, chief analyst at FXStreet explained that the pair held at the lower end of the previous week’s range and the daily chart shows that technical indicators are in negative ground.
“The Momentum is heading firmly lower within oversold levels and the RSI directionless around 49, skewing the risk to the downside. The same chart shows that the pair had found buyers around the 100 DMA, a key support for these upcoming days at around 111.65. In the 4 hours chart, the pair settled around the 200 SMA and below the 100 SMA, both directionless, while technical indicators stand in positive ground, the Momentum aiming north but the RSI directionless, all of which reflects the limited upward potential.”
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