USDJPY headed higher for the second day to 123.55 after hitting a one-month low of 121.93 on June 30. The intra-day bias is bullish as RSI is above 50 and trending upwards.
Prices are likely to meet resistance around 124.19, which is 23.6% of the Fibonacci retracement level of the upleg from 118.88 to 125.84. The upwards momentum has weakened after the tenkan-sen line’s recent crossing below the kijun-sen line. But the overall outlook for the medium term is still bullish as the pair is trading above the Ichimoku cloud and the moving averages.
However, a weakened momentum may hold back USDJPY from another sustained rally and a break above the June 5 high of 125.84 is needed to prevent the pair from consolidating. On the downside, support would come around 122.35, which is 50% of the Fibonacci retracement level.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.