USD/JPY Technical Analysis: Any meaningful pull-back might be seen as a buying opportunity
|
• The pair extended its retracement slide from levels just above the 112.00 handle, or six-week tops, and eroded a part of previous session's strong up-move.
• The pull-back could be solely attributed to a weaker tone surrounding the USD, albeit risk-on mood/positive US bond yields helped limit deeper losses.
• The pair, so far, has managed to hold comfortably above important short-term moving averages - 50, 100 & 200 SMAs, on the 1-hourly chart and thus, remains poised to resume the positive momentum.
• Yesterday's strong up-move beyond a short-term descending trend-line hurdle add credence to the constructive outlook and now seems to act as a key trigger for bullish traders.
• Meanwhile, technical indicators on the mentioned chart have started losing positive momentum and might turn out to be the only factor prompting some further weakness.
Spot Rate: 111.81
Daily High: 112.08
Daily Low: 111.81
Trend: Bullish
Resistance
R1: 112.15 (Aug. 1 high)
R2: 112.53 (R2 daily pivot-point)
R3: 113.00 (round figure mark)
Support
S1: 111.59 (descending trend-line resistance break-point)
S2: 111.34 (50-day SMA)
S3: 111.00 (round figure mark)
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.