- USD/JPY Falls to 108.00 despite RSI Conditions
USD/JPY Falls to 108.00 despite RSI Conditions
USD/JPY posts 0.28% loss while weakening to 108.13 on early Tuesday. The pair lately dropped to 107.92 under 100-bar SMA, however, oversold RSI conditions may have caused its pullback from May-June upside.
The quote’s weakness appears to take hints from the change in risk-sentiment that bolsters the Japanese yen.
Notwithstanding North Korea’s declaration to cut all Korean correspondence from the South, geopolitical strains in Libya likewise burden the market’s risk tone off.
On the other hand, the Labor Cash Earnings of Japan in April dropped drop over 0.6% prediction, which then urges the traders to anticipate May’s initial Machine Tools Orders, past – 48.3% earlier.
Traders on the buying side are less inclined to take new positions moving forward unless a reasonable break above 108.85 shows that it involves different high/low stamped last Wednesday and Thursday.
As such, the investors may intend to revive the monthly high past 109.85 while looking towards 110.
On the other hand, a reasonable break beneath 100-bar SMA and 50% Fibonacci retracement, close to 108.00 and 107.90 respectively, can get the USD/JPY prices to an uptrend from May 06, at 107.53 at this point.
You should note, however, that the pair’s further drop past-107.53 may pose a challenge to continue, as 200-bar SMA and 61.8% Fibonacci retracement offer solid support around 107.50/45.
Information on this page are solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your own thorough research before investing in any type of asset. Learn to Trade does not fully guarantee that this information is free from errors or misstatements. It also does not guarantee that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk which may result in the loss of a portion or your full investment. All risks, losses and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.
By bsuper| No Comments