USD/JPY Forecast: Break below 112.12 would confirm the trend reversal
|Resistance:
112.89 (100-DMA + 23.6% Fib R of 108.13 - 114.37)
113.30 (5-DMA + 10-DMA)
113.99 (23.6% Fib R of 2011 low - 2015 high)
114.54 (23.6% Fib R of Nov low - Dec high)
Support:
112.40 (falling trend line support)
112.12 (rising trend line support)
111.65 (50-DMA)
111.60 (Feb low)
Daily chart
- The falling trend line is offering support at 112.40 levels as noted above.
- The RSI is sloping downwards, but is still above 50.00 levels.
4-hour chart
- The rising trend line is seen offering support around 112.12.
- The RSI is close to being oversold, however, the MACD shows the bearish momentum is gathering pace.
A break below 112.12 would push the daily RSI below 50.00 (bearish) and signal the rally from the low of 108.13 has ended. The pair could then test support level at 111.65-111.60.
Only a rebound from the rising trend line support of 112.12 followed by a break above 113.14 would indicate the bulls have regained control of the pair.
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