USDJPY posted a two-week low during yesterday’s trading. The pair is currently at a point where it covered a bit less than half of yesterday’s fall.
The RSI is bearish at 45 with the stochastics also painting a bearish short-term picture. Specifically, the %K line is in negative territory and below the slow %D line. Note though that %K has hit oversold levels as it is currently below 20.
The 50-day moving average (MA) at 113.70 comes into view as an immediate barrier to upside moves. A break above it would shift focus to the 38.2% Fibonacci retracement level (mid-December to February 7 downleg) at 114.28 as another resistance level. Above it, the 50% Fibonacci at 115.10, which is also close to the potentially psychologically significant 115 handle and the March 10 near two-month high of 115.50, would be eyed.
On the downside, the 23.6% Fibonacci at 113.25 is providing immediate support while if it fails to hold, additional support is likely to come from yesterday’s low at 112.90.
Regarding the medium-term, it is currently looking neutral to bullish with the price far above the 200-day MA and just below the 50-day one.
Overall, the short-term bias is bearish and the medium-term is neutral to bullish.
Origin: XM
