USDJPY is testing the 133 yen level today. There was an attempt to break above it briefly this morning but the pair has mostly traded below this level all week. However prices appear to have bottomed out and steadied since dropping to 16-month lows of 110.96 on February 11.
The levelling off of the RSI at oversold levels around 30 suggests that downward pressure has eased and the market will likely consolidate in the short term. But the outlook remains bearish since the moving averages are negatively aligned and falling. The shorter-term moving average (the 50-day MA) is below the 100 and 200-day moving averages. Meanwhile, MACD is below zero, which also supports the bearish bias.
The 112 yen level is a key support level, which if broken will see a resumption of the downtrend that started on January 29 when prices fell from 121.68.
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.