- The USD/JPY hourly chart shows the relative strength index (RSI) has adopted a bearish bias (dropped below 50.00) and the spot is establishing a lower high and lower low pattern (bearish setup).
- The 4-hour chart shows a bearish divergence of the RSI and the yesterday’s doji candle shows bullish exhaustion.
- All-in-all, the pair looks set for a deeper pullback.
Hourly chart
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Spot Rate: 112.70
Daily High: 112.88
Daily Low: 112.65
Trend: Bearish
R1: 113.00 (psychological hurdle)
R2: 113.27/28 (200-week MA + 61.8 percent Fib of 2017-18 slide)
R3: 114.74 *(November 2017 high)
Support
S1: 112.60 (5-day moving average)
S2: 111.99 (10-day moving average)
S3: 111.40 (May 21 high)
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