USD/JPY could head north
|The rigid barrier
155.00 level represents a major technical and psychological barrier. It acts like a rigid "shell" that the pair has been considering, making it a critical point for growth (breakout) or retreat (rejection).
155.44 the upper level of the Bollinger band, once broken by a daily close, I believe the pair will head north to at 156.78 weekly pivot level, followed by 158.40 level.
The most significant pressure preventing the USD/JPY from breaking this shell isn't just traders; it's the risk of intervention by the Japanese authorities.
Verbal intervention historically causes a sudden and a sharp drop.
Failure to break the shell, the pair will head south to the Bollinger band’s moving average around 153.30 level, a clear break, the next move to follow will be around 151.20 level.
There is a negative divergence between the RSI and the USD/JPY price, as well as the Commodity Channel Index and the USD/JPY price.
As we see, the prices make higher highs, but the RSI and CCI make lower highs, and it is a sign that the uptrend move is getting weaker, and the momentum is fading.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.