Forex Technical Update
USD/JPY's rally from 76 support stalled at 77.80, where the market ranged between that resistance and 77.50 support. As the 2/13 US session got underway, it fell below 77.50. The RSI in the 1H chart also fell below 40, showing loss of bullish momentum. We have noted the 77.30 pivot as a key level and if price can break below 77.30, and fall below the rising trendline, we should be seeing a slide toward 77.00. Below that, a test of 76.55 could be next.
The market is inside of a range with resistance at 78.25, so any bullish outlook should be capped at this level for now. A break above 78.25 would be a strong bullish signal outside of the short-term. This can start with a failure to break below 77.00 and a break back above 77.80. Otherwise, below 77.00, we look at the 76.55 support, and then 76.00 again.
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