USD/JPY clocked a 13-month high of 113.96 in Asia. The oversold JPY could catch a bid wave if Italian fiscal concerns weigh on the European equities. The USD/JPY is solidly bid around 113.90 in early Europe, having clocked a 13-month high of 113.96 in Asia. The growing divergence between the Fed and the BOJ indicates the path of least resistance is to the higher side. Add to that, the pennant breakout on the monthly chart, and the prospects of a stronger rally toward 115.00 appear high. However, the 14-day relative strength index (RSI) is indicating the low-yielding JPY is oversold for the first time since mid-July. As a result, it could pick up a strong bid in the next few hours, if the Italy-Germany yield spread rises sharply, pushing the European stocks lower. On the other hand, the JPY selling may continue, yielding a convincing break above 114.00 in USD/JPY if the European equities report gains. In the US session, the pair may also take cues from the US ISM non-manufacturing release. USD/JPY Technical Levels Resistance: 114.37 (May 2017 high), 114.49 (July 2017 high), 114.74 (November high) Support: 113.61 (daily low), 113.17 (200-week moving average), 113.00 (psychological level) Â Â Â FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Forex Today: Asia holidays and NAFTA gets a new name FX Street 4 years USD/JPY clocked a 13-month high of 113.96 in Asia. The oversold JPY could catch a bid wave if Italian fiscal concerns weigh on the European equities. The USD/JPY is solidly bid around 113.90 in early Europe, having clocked a 13-month high of 113.96 in Asia. The growing divergence between the Fed and the BOJ indicates the path of least resistance is to the higher side. Add to that, the pennant breakout on the monthly chart, and the prospects of a stronger rally toward 115.00 appear high. However, the 14-day relative strength index (RSI) is indicating the low-yielding JPY is oversold… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
