Bears are still in power
There are no major economic reports in Japan but the US will release Pending Home Sales. On the chart, the price line has formed a top and has had a free fall. As it seems the bearish trend has not finished yet and the trendline is still valid. Indicators has not issued any trend reversal signals yet.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The support rests at 106.650 with resistance at 108.420 which both lines are below the weekly pivot point at 109.150. The EMA of 10 is moving with bearish bias in the descendant channel and it is below the EMA of 100 and the EMA of 200. The RSI is moving in oversold area, the Stochastic is moving in low ranges and the MACD line is below the signal line in the negative territory. The ADX is showing sell signal.
To complete the correction pattern USDJPY is targeting level 50 of Fibonacci at 106.450.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.