USD/JPY Forecast: Eyes lower Bollinger band/channel support

Omkar Godbole FXStreet Contributor

Daily chart

Friday’s retreat from 113.49 to 112.56 adds credence to bearish break below 50-DMA on Thursday and open doors for a sell-off to 111.73 (confluence of channel support and lower Bollinger band).
Under 111.73, the spot would run into an immediate support at 111.60 (Feb low). Only a daily close below 111.60 would signal the continuation of the retreat from The December high of 118.66 levels.
The daily RSI is below 50.00 sloping downwards, but still sufficiently away from the oversold territory. That signal potential for a drop to 111.73-111.60 levels.
On the higher side, only a daily close back above the 50-DMA would signal bearish invalidation.

AUD/USD Forecast: Could target the upper end of the Bollinger band this week

Weekly chart

Failure to take out the weekly 50-MA earlier this month, followed by a blast higher last week not only kept the RSI above 50.00, but also suggests the retreat from the late Feb high of 0.7741 was corrective move.
This, coupled with the highest weekly close (above 0.77) since April 2016 has opened doors for 0.7814 (upper end of the Bollinger band).
On the downside only a daily close below 0.76 would signal bullish invalidation.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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