USD/JPY: Consolidating above the pivot on 119 handle
FXStreet (Guatemala) - USD/JPY is currently trading at 119.23 with a high of 119.44 and a low of 118.52.
The greenback was on top at the start of the week while USD/JPY has been capped at the highs and moves across to Asia with a slightly bearish bias, in line with the downtrend from 120.80's. The minor recovery from the 118.50's and April lows broke the pivot and is now starting to consolidate waiting further impetus.
Technically and on the 1 hour chart, Valeria Bednarik, chief analyst at FXStreet, explained that it shows that the pair advanced above its 100 SMA, currently around 119.10, whilst the Momentum indicator heads strongly higher in overbought territory. "In the same chart however, the RSI retreats from overbought territory, now heading lower around 60." Longer term, we remain in the rising ranges, with the 14 year downtrend at 122.20 as resistance, as noted by Karen Jones, chief analyst at Commerzbank, while they suspect that any upside probes will remain limited. "A close below 118.33 March 26 low what be viewed as negative and trigger losses to the February low at 116.64."