Technical Analysis – USDJPY dives near 61.8% Fibonacci
USDJPY fails to surpass 148.50 resistance
Rebounds off 140.20 still intact
However, RSI and MACD suggest negative correction
USDJPY has been struggling to surpass the 148.50 resistance level over the last five days after the upward movement from the 140.20 support level. The pair is still holding above the 61.8% Fibonacci retracement level of the down leg from 151.90 to 140.20 at 147.40 and well above the simple moving averages (SMAs).
However, the technical oscillators are suggesting a bearish retracement in the market. The RSI is pointing down above the neutral threshold of 50, while the MACD is moving horizontally beyond its trigger and zero lines.
A successful climb above the 148.50 barricade could open the way for steeper increases until the next strong resistance of 149.70 and the 151.90 mark, registered from the high of 151.90.
On the other hand, a decline below the 61.8% Fibonacci of 147.70 could drive the pair until the next support of 146.60 before the bulls meet the 50-day SMA, which coincides with the 50.0% Fibonacci of 146.07. Underneath this area, traders could have a close eye on the 20- and the 200-day SMAs at 145.25 and 145.15 respectively, where the 38.2% Fibonacci of 144.70 also lies.
Summarizing, USDJPY is having an upside correction and the fact that is standing above the 61.8% Fibonacci is raising optimism for further bullish actions in the short-term. A move below it would endorse the technical oscillators scenario for a downside move.
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