FXStreet (Barcelona) – With USD/JPY facing a stiff resistance at 124.20/30 area and retracing lower, Valeria Bednarik, Chief Analyst at FXStreet, sees further losses for the pair on a break below the immediate support at 123.30.
Key Quotes
“The USD/JPY has extended its recovery up to 124.13 but was unable to sustain its gains above the 124.00 figure, and retraces sharply lower. The 1 hour chart shows that the 100 and 200 SMAs, converge around 124.20/30, providing a strong dynamic resistance area, whilst the technical indicators have turned lower near overbought levels, supporting additional declines should the price break below 123.30, the immediate support.”
“In the 4 hours chart, the technical indicators have bounced from oversold territory, but are now turning back south below their mid-lines, supporting the shorter term view.”
“Support levels: 123.30 122.90 122.55”
“Resistance levels: 124.10 124.45 124.90”
(Market News Provided by FXstreet)