Technical Analysis – USDJPY still flirts with 38-year high
USDJPY’s bounce off 154.50 still in place
MACD and RSI head north
But stochastics look overbought
The technical oscillators are standing in their overbought areas. The RSI is still holding above the uptrend line and the MACD is strengthening its positive momentum above its trigger and zero lines. However, the stochastic oscillator posted a bearish crossover within its %K and %D lines above the 80 level, suggesting a potential downside retracement.
In case of negative pressures, the market could meet support at the 160.20 barrier, which was the previous high before it heads lower to the 161.8% Fibonacci extension level of the downward wave from 151.85 to 140.20 at 159.10. A successful close below this level could see a retest of the 20-day SMA at 158.50 and the 157.80 barricade, which coincides with the rising trend line.
On the other hand, a rally to the upside again may drive the pair towards the next obstacles of the 162.00 and 163.00 round numbers before meeting the next resistance level at 164.50, taken from the peak in November 1986.
In brief, the outlook remains positive since prices hold above all the moving average lines and the uptrend line, but the stochastic oscillator indicates an overstretched market.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.
