FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair sunk earlier in the day, falling down to 119.69, a level that retested during the American afternoon, but held.
Key Quotes:
“The Japanese yen received some attention as European stocks sunk, but buying interest on deeps continues to defend the downside around the 119.70 level. Now hovering around the 120.00 figure, the 1 hour chart shows that the price is below its 100 and 200 SMAs that are slowly turning lower, but with no actual directional strength, whilst the technical indicators have bounced from oversold territory, but remain well below their mid-lines, giving little support to a continued advance, as long as the price remains below a strong Fibonacci resistance around 120.35.”
“In the 4 hours chart, the technical stance is neutral-to-bearish, with the price moving back and forth around an horizontal 100 SMA and the technical indicators turning lower around their mid-lines. The price has been trading in a well-limited range ever since September started, and odds of a directional break are few, as long as the high levels of uncertainty remain.”
(Market News Provided by FXstreet)