XM Group - Analytics

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    Technical Analysis – USDJPY neutral bias with downside risk


    USDJPY maintains its neutral bias, trading in a broad range between 112.00 and 114.50 since mid-February.

    Only a break above 115.96 (January 20 low) would shift the near-term bias to a more bullish one. Downside risk exists as indicated by the falling RSI. The indicator is also below 50 in bearish territory. Meanwhile, the negatively aligned moving averages also highlight a bearish outlook.

    There is scope for prices to target the key 111.00 level, which is an important support level. A sustained break below this level would develop into a deeper correction of the long term uptrend that started from the end of 2011 when the market bottomed at 75.55 and rose to a 13-year high of 128.84 in mid-2015. The MACD in the long term chart is bearish and is below zero.

    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.

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