- USD/JPY created doji candle on Wednesday.
- The 4-hour chart shows a bullish divergence of RSI.
USD/JPY is currently trading at 0.16% on the day at 109.42, but may soon pick up a bid and rise toward 110.00 over the next 24 hours as technical charts are flashing signs of seller exhaustion.
To start with, the pair created a classic long-legged doji candle on Wednesday, a sign of indecision among the sellers. After all, the candle has appeared following a sell-off from 112.40 to 109.02.
Further, on the 4-hour chart, the relative strength index (RSI) has diverged in favor of the bulls.
As a result, a corrective bounce to 10-day moving average, currently at 109.98 looks likely.
- R3 110.37
- R2 110.04
- R1 109.82
- PP 109.49
- S1 109.26
- S2 108.93
- S3 108.71
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