USDJPY is currently down but not much changed from the day’s open. The pair recorded a one-week low during yesterday’s trading while it finished the day lower as well in the three previous days.
Looking at the Ichimoku analysis, the negative short-term signal when the Tenkan-sen line (red) crossed below the Kijun-sen (blue) is still in place. Adding to this signal are the RSI and MACD indicators, as RSI is currently below 50 at 36 and the MACD histogram is negative.
The Tenkan-sen’s current level at 111.15 could offer some resistance to up movements in price. Above this, a potential psychological level, the 112 point, and the March 31 two-week high of 112.19, might act as an additional resistance area. A break above would shift the focus to the Kijun-sen, 50-day moving average (MA) and cloud bottom, ranging from 112.80 to 113.25, as another barrier to the upside.
On the downside, yesterday’s low of 110.26, combined with the March 27 four-and-a-half-month low of 110.10, comes into view as an immediate support area. Should the price continue declining, next support is likely to come from the current level of the 200-day MA at 108.61.
Turning to the medium-term picture, it is looking neutral at the moment with the price in between and roughly equally distanced from the 50- and 200-day MAs.
Overall, the short-term bias is bearish and the medium-term is neutral.
Origin: XM
