USD/JPY closed slightly higher due to short covering on Tuesday as it consolidates some of last week's decline but remain below the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bearish hinting that a short-term top might be in or is near. Multiple closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it renews the rally off May's low, last November's high crossing is the next upside target.
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