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USD/JPY bulls not convincing at key resistance on 118

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - USD/JPY has been resuming the upside in a minor recovery of the daily sticks, but is struggling with what was the key support line since the middle of August business and again in the middle of October. Traditionally this level at 118.20 has been a key turn point and pinnacle, especially if a break up occurs and can hold on a daily basis.

    Meanwhile, the Yen on the other hand will remain dominant overall in risk-off markets as investors continue look for safe havens. The data of late has been mixed around the Globe and not even very positive data has been able to turn the tide convincingly. China is of course the main catalyst for the nervousness and until stability is sustained for a significant time frame, the downside is still favoured in USD/JPY, despite the dollar being at the highest levels for over a decade.

    USD/JPY levels

    Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price is far below its moving averages, "The Momentum indicator turned south above the 100 level, and the RSI indicator holds flat around 52, indicating a limited upward potential. The pair needs at least to recover above the 119.35 level to begin looking constructive, something unlikely for this Friday."
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