HomeContributorsTechnical AnalysisUSD/JPY Outlook: Pullback So Far Limited But Risk of Deeper Correction Exists

USD/JPY Outlook: Pullback So Far Limited But Risk of Deeper Correction Exists

The pair pulled back from new multi-month high at 112.22 after bulls faced strong headwinds on approach to strong barriers at 112.40/41 (24 Apr 2019 high/50% retracement of 125.84/98.99 fall).

The 70-pips pullback was so far rejected at 111.48, above pivotal Fibo support at 111.24 (38.2% of 109.65/112.22 upleg) but the downside remains at risk as daily indicators (RSI and stochastic) are overbought and start to reverse, while strong bullish momentum is fading.

Also, profit-taking after strong rally (the biggest weekly gains since mid-July 2018) may increase pressure on the pair.

Extended dips should be contained above broken Fibo barrier at 110.52 (76.4% of 112.40/104.44) to signal consolidation ahead of fresh advance and keep larger bulls in play.

Res: 112.22; 112.40; 112.66; 113.17
Sup: 111.61; 111.48; 111.24; 110.92

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Featured Analysis

Learn Forex Trading