USD/JPY Forecast: Pullback to 110.80-110.66 would be short lived

Omkar Godbole FXStreet Contributor

4-hour Chart

Observations –

Bearish price-MACD divergence

Bullish 50-MA & 100-MA crossover

Resistance: 111.40 (1-hour 50-MA), 111.82 (100-DMA), 112.13 (May 24 high)

Support: 111.11 (50-DMA), 110.81 (June 9 high on 4-hour chart), 110.66 (200-DMA), 110.53 (1-hour 200-MA)

Comments

The bearish MACD divergence and oil-led risk-off could yield a pull back to 110.81 – 110.66, although the broader outlook remains constructive given the bullish price action on the weekly chart and the bullish crossover between 50-MA & 100-MA on the 4-hour chart.

Only a daily close below 110.66 (200-DMA) would signal the rally from 108.80 has ended at 111.79 and would revive the bearish trade.

View: Pull back to sub-101 likely to be short lived.

NZD/USD Forecast: Bullish exhaustion, eyes dub-0.72 levels

Daily chart

Observations –

Bearish price MACD divergence

Bearish crossover on MACD

Inverted bearish hammer on June 19

RSI turning lower from overbought territory

4-hour chart

Bearish breakdown from symmetrical triangle

Comment

Kiwi looks set to test 0.7200 (zero figure + 23.6% Fib R of 0.6818-0.7319) and 0.7185 levels. By then, the 1-hour RSI would have hit the oversold territory, thus the support at 0.7185 is likely to stay intact.

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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