USDJPY Analysis: Continues to edge lower
|Despite technical indicators flashing bullish signals, the US Dollar was driven by strong downside momentum on Monday. During this time, the pair managed to breach the 100– and 200-hour SMAs and the prevailing seven-week channel circa 107.20.
On Tuesday morning, the nearest support was set by the weekly S1 and the 23.60% Fibonacci retracement at 106.75 and a two-week support level at 106.66. The pair is expected remain in the 106.70/107.20 range during this session. It could still edge lower within the following hours prior to reversing northwards and testing the breached moving averages.
The southern barrier should hold firm, while the 107.10 area might actually surrender under the bullish pressure if solid US fundamentals add some upside volatility to the market.
Interested in USDJPY technicals? Check out the key levels
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.