USDJPY is testing the key psychological 123.00 yen level which is now acting as intra-day resistance. The intraday bias is neutral as the pair consolidates around this level.
On the daily chart, the market is well above the Ichimoku cloud and above the 200-day moving average. This is supporting a bullish bias. The tenkan-sen line is above the kijun-sen line, also a bulish signal. Prices broke out of a recent 118.05 – 120.87 range (from the end of August to early November) after rallying sharply last Friday following a strong US jobs report. After reaching a high of 123.59, prices are now correcting this rally as the market approached overbought levels – RSI near 70.
The top of the recent range will act as support for a downside move 121.65. If this support fails, prices would return to a neutral bias back into the range.
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.