USD/JPY Technical Analysis: Back below 112.00, the bulls need to defend the support of April 5 high
|USD/JPY has pulled back to 111.95, having tested Friday's high of 112.10 earlier today.
The bearish divergence of the hourly chart relative strength index (RSI) indicates scope for a further drop toward the former resistance-turned-support of 111.82 (April 5 high).
Acceptance below that level would invalidate the bullish higher high and higher low pattern confirmed by Friday's close at 112.05. It would also take the shine off the pair's strong bounce from the 50-day moving average seen last week and the bullish crossover of the 50- and 100-day moving average (MAs).
However, the pair will likely set a four-month high above 112.14 (March 5 high) if the support at 111.82 holds ground, reinforcing the bullish case put forward by the MA crossover and Friday's close at 112.05.
Hourly chart
Daily chart
Trend: Bullish on the defense of 111.82
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.