FXStreet (Bali) – USD/JPY seems poised to extend its decline in the short term, notes Valeria Bednarik, Chief Analyst at FXStreet, on her daily technical report.
Key Quotes
“The Japanese yen stalled its recovery from the 13-year low posted last Friday against the greenback, as the USD/JPY pair ended the day up around 123.50. The pair posted a short-lived spike up to 124.13 following the release of US Retail Sales, but quickly turned lower, unable to sustain gains beyond the 124.00 level.”
“The pair seems poised to extend its decline in the short term, as the 1 hour chart shows that the early advance stalled right below its 100 SMA that has crossed below the 200 SMA for the first time since May 20th, now providing an immediate intraday resistance around 124.10. In the same chart, the technical indicators have retreated from overbought levels and continue to head lower towards their mid-lines.”
“In the 4 hours chart, the price is now hovering around its 100 SMA, whilst the technical indicators have corrected extreme oversold readings, but are now losing upward strength below their mid-lines, supporting the shorter term view, particularly on a downward extension below 123.30, the immediate support.”
(Market News Provided by FXstreet)