USD/JPY Technical Analysis: Sustained break above 112.00 remains elusive, 4H RSI diverges in favor of bears

Omkar Godbole FXStreet Contributor

USD/JPY is struggling to find acceptance above 112.00 for the sixth consecutive day with the 4-hour chart relative strength index creating lower highs (bearish divergence).

As of writing, the spot is currently trading at 111.93, having hit a year-to-date high of 112.17 yesterday.

The news crossed the wires a few minutes before press time that Japan may delay the sales tax hike, due in October. So far, however, that has failed to move the needle on USD/JPY.

4-hour chart

The repeated failure to find acceptance above 112.00 validates the case for pullback put forward by the RSI's bearish divergence.
As a result, the spot could drift lower to the 50-candle moving average, currently flatlined at 111.63. The bearish case would weaken if the spot finds acceptance above 112.00.

Trend: Minor pullback likely

USD/JPY

Overview
Today last price	111.93
Today Daily Change	-0.12
Today Daily Change %	-0.11
Today daily open	112.06

Trends
Daily SMA20	111.21
Daily SMA50	111.09
Daily SMA100	110.83
Daily SMA200	111.52

Levels
Previous Daily High	112.17
Previous Daily Low	111.92
Previous Weekly High	112.1
Previous Weekly Low	110.84
Previous Monthly High	112.14
Previous Monthly Low	109.71
Daily Fibonacci 38.2%	112.07
Daily Fibonacci 61.8%	112.02
Daily Pivot Point S1	111.93
Daily Pivot Point S2	111.8
Daily Pivot Point S3	111.69
Daily Pivot Point R1	112.18
Daily Pivot Point R2	112.3
Daily Pivot Point R3	112.43

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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