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USD/JPY risks breaking lower – FXStreet


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FXStreet (Barcelona) – FXStreet Editor and Analyst, Omkar Godbole, notes technicals suggest that the USD/JPY pair is likely to break lower in its range and move towards 116.00 levels.

Key Quotes


“The range bound movement continues in the USD/JPY after it ended at 118.31 levels yesterday. Again the losses were capped around 117.40-117.50 levels, while the gains were capped at 118.50 levels.”


“The closing above 118.00 did little to help the pair make further gains, as it is trading lower at 117.83 levels.”


“Furthermore, the daily RSI has failed repeatedly to rise above 50.00 levels despite the pair rebounding from 117.40 levels on multiple occasions.”


“On the hourly charts, the pair is back below all major averages, while the RSI has dipped to 41.87 levels. Thus, the pair is once again likely to test 117.40-117.20 levels today.”


“Moreover, the likelihood of a downside breakout from the range is high since the weekly and the daily chart shows bearish crossover between 5-MA and 10-MA. In such a case, the pair could drop quickly to 116.00 levels after having consolidated in approximately 120 pip range for seven straight sessions.”


“On the other hand, USD bulls would come-in strong above the 50-DMA located at 118.83 levels.”