Forex Technical Update
The USD/JPY is in at the crossroad. We have a break below a triangle (seen more clearly in the 4H chart). The 1H chart shows that this break also break the 200hour simple moving average and pushed the RSI below 30, establishing bearish momentum in the short-term. However, the resistance trendline that guided the market in anchoring out of the triangle is broken in the current pullback. The strength of the pullback stops there, near the 61.8% retracement of the latest downswing. USD/JPY is now possible forming a double top under the 200 hour SMA. The RSI is rejected from going above 60, a sign of bearish momentum maintenance.
The 4H chart shows the market anchoring into a slightly declining channel. The RSI here also dipped below 30. However, price is still trading above the 200SMA, and the market respected the 61.8% retracement level near 77.20.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.