FxWirePro: USDJPY loses momentum but outlook is bullish
The USD/JPY declined on Tuesday as US stocks declined and increased risk sentiment in the market attracted safe heaven assets. However, further decline is expected to be limited as the pair finds strong support at 113.79…
The USD/JPY declined on Tuesday as US stocks declined and increased risk sentiment in the market attracted safe heaven assets.
However, further decline is expected to be limited as the pair finds strong support at 113.79 which should limit downside and bring a rebound back towards higher levels.
Technically the RSI in the 4 hour chart is indicating slightly downwards at 48, meanwhile the 55, 30 and 20 MA's are flat.
To the upside, the strong resistance can be seen at 114.52, a break above this level would take the pair towards next resistance level at 114.84.
To the downside immediate support can be seen at 113.32,a break below this level will open the door towards next level at 112.38.
Recommendation: Go long around 113.30, targets 113.80, 114.50, SL 112.00.
