- The USD/JPY cut through rising trendline support earlier today, the hourly chart shows and is now trading below the 50-hour exponential moving average (EMA) of 112.63.
- The anti-risk JPY seems to have picked up a bid, courtesy of a 0.55 percent drop in the S&P 500 futures.
- The key EMAs are biased toward the bulls - 50-hour, 100-hour and 100-hour EMAs are trending north. More importantly, the stacking order of the 50-hour EMA, above the 100-hour EMA, above the 200-hour EMA is a classic bull signal.
- Further, the pair closed well above 112.73 yesterday, signaling a revival of the recovery rally from the recent low of 111.62. Hence, the spot could bounce off the 200-hour EMA of 112.54.
- However, the support at 112.54 would be breached if the risk aversion worsens. Also, a daily close below 112.73 would weaken the odds of a rally to 113.18.
Spot Rate: 112.57
Daily High: 112.84
Daily Low: 112.55
R1: 112.89 (previous day's high)
R2: 113.09 (50% Fib R of 114.55/111.62)
R3: 113.18 (July high)
S1: 112.54 (5-day EMA)
S2: 112.34 (10-day EMA)
S3: 112.03 (50-day EMA)
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.