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Technical Analysis – USDJPY remains bullish above 200-day moving average

 

USD/JPY made a decent recovery after Wednesday’s tumble to 122.44. The kijun-sen line provides good support but the tenkan-sen line is acting as resistance at 124.16. If there is a sustained break above this level then there is scope for further gains to retest the June 5 high of 125.84.

Meanwhile the 50 % Fibonacci retracement of the May 14 to June 5 rise is also providing support and it coincides with the kijun-sen line, making it a strong support level. As long as prices remains above the 50% Fibonacci the upside momentum remains, especially since the RSI is above 50 in bullish territory. Also the market is above the Ichimoku cloud and above the 200-day moving average, both of which are bullish signals.

The tenkan-sen and kijun-sen lines are positively aligned, highlighting the overall upside potential. A daily close below the kijun line will shift the bias back to the downside.

USD/JPY made a decent recovery after Wednesday’s tumble to 122.44. The kijun-sen line provides good support but the tenkan-sen line is acting as resistance at 124.16. If there is a sustained break above this level then there is scope for further gains to retest the June 5 high of 125.84.

Meanwhile the 50 % Fibonacci retracement of the May 14 to June 5 rise is also providing support and it coincides with the kijun-sen line, making it a strong support level. As long as prices remains above the 50% Fibonacci the upside momentum remains, especially since the RSI is above 50 in bullish territory. Also the market is above the Ichimoku cloud and above the 200-day moving average, both of which are bullish signals.

The tenkan-sen and kijun-sen lines are positively aligned, highlighting the overall upside potential. A daily close below the kijun line will shift the bias back to the downside.

 


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