- USD/JPY's failure to cut through 110.00 resistance has confirmed a bearish pattern on the hourly chart.
- The pair risks falling to the 5-day moving average support in the next few hours.
USD/JPY jumped to 110.00 earlier today, as expected, but failed to chew through offers placed above the psychological resistance and is now trading at 109.85.
With the pullback from the session high of 110.03, the pair has confirmed a bearish divergence (lower highs) on the hourly chart relative strength index (RSI).
Further, the drop from the 110.03 to 109.84 also marks a failure to hold onto gains above the downward sloping (bearish) 10-day moving average at 109.90.
As a result, the spot could fall further toward the 5-day moving average support, currently at 109.64.
A daily close above 110 is needed to invalidate the short-term bearish setup.
- R3 110.74
- R2 110.35
- R1 110.1
- PP 109.72
- S1 109.46
- S2 109.08
- S3 108.83
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.