USD/JPY Technicals Show Chance for Major Move Lower
The Japanese Yen strengthened against the US Dollar for a second week, with USD/JPY slicing below its 50-day Simple Moving Average (SMA) in the process. This comes after the pair rose to its highest level since January 2017 earlier this month.
The formation of a Bearish Engulfing Candlestick on the weekly chart sent a signal to Yen bulls last week. That, along with rejection from the 61.8% Fibonacci retracement, highlighted a strong level of resistance. The Relative Strength Index (RSI) is also showing some bearish divergence (highlighted by the red line in the chart).
Altogether, it looks like USD/JPY could be at the start of a longer-term downtrend. If so, a drop to the 38.2% Fib at 109.26 may be on the cards.
The formation of a Bearish Engulfing Candlestick on the weekly chart sent a signal to Yen bulls last week. That, along with rejection from the 61.8% Fibonacci retracement, highlighted a strong level of resistance. The Relative Strength Index (RSI) is also showing some bearish divergence (highlighted by the red line in the chart).
Altogether, it looks like USD/JPY could be at the start of a longer-term downtrend. If so, a drop to the 38.2% Fib at 109.26 may be on the cards.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.