USD/JPY better bid but lacks conviction – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair posted a soft advance this Tuesday, extending its weekly rally up to 123.48 in the American afternoon, following the positive mood among stocks traders.

Key Quotes:

“The pair, however, made little technical progress, still contained below the post-NFP high of 123.59, the level to break to confirm a more constructive outlook. Short term, the 1 hour chart shows that the 100 and 200 SMAs, head slightly higher and in a tight range around 122.80/123.00, reflecting a limited upward momentum at the time being.

In the same chart, the technical indicators have turned lower, lacking directional strength, but holding above their mid-lines. In the 4 hours chart, the price holds near its daily high, whilst the technical indicators have lost their upward strength near overbought territory, still far from indicating a bearish movement for the upcoming sessions.”
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Source:: FX Street