In terms of the technical levels, “the pair’s near-term sideways movement has turned the sentiment more negative, as the price has been unable to lift above range top at 78.36, thereby reverting towards its the base at 78.00. Hourly indicators are strictly showing a negative tone, though the cross is still moving sideways, as indicators are in the negative territory and its constituent 20/55 day EMA’s bearish crossover keeps the downside pressure intact.” writes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
In terms of directional measures, Drvenica points to supports at 78.00, 77.92, and 77.50. On the ascension, a break above 78.27 will initiate resistances at 78.45 and finally 78.55.
According to the ICN.com Analyst Team, “The USD/JPY has been locked in a consolidation pattern during the previous two sessions above the 76.4% Fibonacci retracement of the entire upside rally as seen on the provided daily charts. The RSI 14 is moving below the value of 50.00, whilst MACD is holding neutral despite drawing a positive divergence earlier. Thereby, we hold onto our neutral stance until an actionable setup presents itself to pinpoint the next move, noting that the risk versus reward ratio is very high.”