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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