USD/JPY Forecast: Pullback to 110.80-110.66 would be short lived
|4-hour Chart
Observations –
Bearish price-MACD divergence
Bullish 50-MA & 100-MA crossover
Resistance: 111.40 (1-hour 50-MA), 111.82 (100-DMA), 112.13 (May 24 high)
Support: 111.11 (50-DMA), 110.81 (June 9 high on 4-hour chart), 110.66 (200-DMA), 110.53 (1-hour 200-MA)
Comments
The bearish MACD divergence and oil-led risk-off could yield a pull back to 110.81 – 110.66, although the broader outlook remains constructive given the bullish price action on the weekly chart and the bullish crossover between 50-MA & 100-MA on the 4-hour chart.
Only a daily close below 110.66 (200-DMA) would signal the rally from 108.80 has ended at 111.79 and would revive the bearish trade.
View: Pull back to sub-101 likely to be short lived.
NZD/USD Forecast: Bullish exhaustion, eyes dub-0.72 levels
Daily chart
Observations –
Bearish price MACD divergence
Bearish crossover on MACD
Inverted bearish hammer on June 19
RSI turning lower from overbought territory
4-hour chart
Bearish breakdown from symmetrical triangle
Comment
Kiwi looks set to test 0.7200 (zero figure + 23.6% Fib R of 0.6818-0.7319) and 0.7185 levels. By then, the 1-hour RSI would have hit the oversold territory, thus the support at 0.7185 is likely to stay intact.
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