USD/JPY Technical Analysis: Pullback from six-week highs above 112.00 could be short-lived

  • USD/JPY's pullback from the six-week high of 112.08 to 111.83 is likely associated with the bearish divergence of the 14-hour relative strength index (RSI), although the short-term outlook still remains bullish, as the 5-day and 10-day moving averages (MAs) are trending north.
  • More importantly, the pair closed yesterday above the crucial resistance of 111.83 (Aug. 29 high), signaling a revival of the rally from the Aug. 21 low of 109.77. As a result, the pair looks set to test the highs above 113.00 in the next couple of weeks.
  • On the downside, a daily close below the 10-day MA would abort the bullish view.

Hourly Chart

Daily Chart

Spot Rate: 111.83

Daily High: 112.08

Daily Low: 111.81

Trend: bull breakout confirmed


R1: 112.15 (Aug. 1 high)

R2: 112.53 (daily pivot R2)

R3: 113.33 (July 19 high)


S1: 111.65 (support of Sep. 11 high as per the hourly chart)

S2: 111.39 (daily pivot S1)

S3: 111.33 (50-day moving average)

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.