USD/JPY: under pressure of hard landing China – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted and explained that USD/JPY fell down to 120.87 during the Asian session, recovering afterwards up to the 121.20/30 price zone, where it held for the rest of the day.

Key Quotes:

“Having traded within a tight 20 pips range for most of the last two sessions, the pair is now neutral in the short term, and the 1 hour chart shows that the price is stuck around the 200 SMA, whilst the technical indicators lack directional strength around their mid-lines.”

“In the 4 hours chart, the Momentum indicators has turned lower, but remains above its 100 level, whilst the RSI indicator holds flat around 54. In this last chart, the 100 SMA continues falling below the 200 SMA well above the current level.”

“Also, the pair has failed to extend beyond the 61.8% retracement of the last two-weeks decline, and will likely remain under pressure on renewed concern about a hard landing for China’s economy, and poor Japanese inflation figures. The immediate support stands at 121.00, the 200 DMA, but it will take a break below 120.60 to confirm a bearish continuation for this Tuesday.”
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Source:: FX Street