USD/JPY at the Crossroad; Will it Maintain its Uptrend?

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USD/JPY at the Crossroad; Will it Maintain its Uptrend?

USD/JPY started the week coming off a fresh high on the year at 121.84. Throughout the week so far, it has drifted lower and made a low on the month just under 118.00. It is now trading at the crossroad. Let’s take a look at the 4H chart.

Now, 117.85-118 and 120 will be key levels in the short-term. A break below 117.85 would open up further bearish correction, with risk towards 116.00, at which point we should monitor for buyers, especially if the RSI shows oversold conditions (below 30).

If price breaks above 120.00, USD/JPY would have maintained the bullish bias and momentum, and be poised to push towards the 121.84 high, with risk of testing the 122.00 handle, and with the 123.00 handle in sight.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.