USD/JPY technical analysis: Diverging signals on hourly chart warrant caution for short-term traders
|• The USD/JPY pair extended its pullback from two-week tops and traded with a mild negative bias for the second consecutive session, albeit showed some resilience near 100-hour SMA.
• However, the fact that the pair already seems to have found acceptance below 23.6% Fibo. level of the 109.02-110.68 up-move points to further weakness amid the prevailing risk-off mood.
Technical indicators on the 1-hourly chart have struggled to gain any positive traction and maintained their bearish bias on the daily chart, reinforcing the negative outlook and supporting prospects for a further intraday decline.
Meanwhile, the latest leg of a downtick has been along a short-term descending trend-channel and given the recent bounce from multi-month lows, constituted towards the formation of a bullish continuation – flag chart pattern on the 1-hourly chart.
Hence, it would be prudent to wait for a convincing break through the mentioned 100-hour SMA support before positioning for a slide back below the key 110.00 psychological mark or a sustained move beyond the trend-channel resistance for a possible move towards the 111.00 handle.
USD/JPY 1-hourly chart
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.