USD/JPY: the key resistance at 109.70 has come under scrutiny again
|USD/JPY
The bull swing higher that came in the wake of the dialling down of geopolitical tensions has been running out of steam as the key resistance at 109.70 has come under scrutiny again. This seems to be a key moment as consistently over recent months we have seen resistance levels tested and even if breached, only manage to do so on an initial break basis. Subsequent consolidation has followed a break only to then retrace. Into Monday morning, the bulls are still looking well set for now, but momentum indicators are pulling higher towards key ranging levels again. The RSI has tended to come a cropper around the 60/65 mark, whilst Stochastics struggle just as they get towards 80 (around where they are now). It is for this reason, we would view any prospective break above 109.70 with caution. Initial resistance would then be at 109.90 before 110.65, however beware the often seen retracement. Initial support at 109.00/109.20.
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.