USD/JPY Technical Analysis: Back below 112.00, the bulls need to defend the support of April 5 high

USD/JPY has pulled back to 111.95, having tested Friday’s high of 112.10 earlier today.

The bearish divergence of the hourly chart relative strength index (RSI) indicates scope for a further drop toward the former resistance-turned-support of 111.82 (April 5 high).

Acceptance below that level would invalidate the bullish higher high and higher low pattern confirmed by Friday’s close at 112.05. It would also take the shine off the pair’s strong bounce from the 50-day moving average seen last week and the bullish crossover of the 50- and 100-day moving average (MAs).

However, the pair will likely set a four-month high above 112.14 (March 5 high) if the support at 111.82 holds ground, reinforcing the bullish case put forward by the MA crossover and Friday’s close at 112.05.

Hourly chart

Daily chart

Trend: Bullish on the defense of 111.82

Articles You May Like

AUD/USD consolidates near 0.6875 ahead of the key day
Ichimoku Strategy – Break It Down
USD/CHF technical analysis: Bears take full control, hammered down to fresh 5-month lows
WTI technical analysis: en-route for the 200-D EMA around 58.80
My Best CFD Forex Trading System | Trend Following Strategy

Leave a Reply

Your email address will not be published. Required fields are marked *