USD/JPY: 120.35 immediate resistance – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair ended the week with gains, having extended its decline down to 119.05 on Friday, on the back of Wall Street’s decline.

Key Quotes:

“The Japanese currency, despite favored has been confined against the greenback to a clear 300 pips for the last three weeks, in between Fibonacci levels, which mostly reflects the high levels of uncertainty among investors. Technically however, the downward potential has been slowly increasing as the pair set a series of lower lows daily basis.

The lowest of the mentioned range was set around 118.50, and it will take a downward acceleration below it, to confirm a more sustainable bearish continuation. In the meantime, the daily chart shows that the price remains well below its 100 and 200 SMAs, whilst the technical indicators head south below their mid-lines, with the RSI indicator anticipating additional declines around 41.

In the 4 hours chart, the technical indicators stand flat in negative territory, whilst the 100 SMA hovers around the 50% retracement of the latest weekly decline around 120.35, providing an immediate resistance level.”
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Source:: FX Street