- Bearish negative divergence on the RSI (14) is indicating exhaustion in the upside move.
- The greenback bulls have defended the 10-EMA at 134.69.
- The 20-EMA is still scaling higher untouched and is favoring a bullish bias.
The USD/JPY pair is displaying wild moves after the release of Japan’s Inflation. The asset is facing barricades around the round-level resistance of 135.00. On a broader note, the major has witnessed a steep fall after failing to sustain above the critical hurdle of 136.00.
The formation of bearish negative divergence on a daily scale is hinting for exhaustion after a juggernaut rally. In a comparison of the asset price and the momentum oscillator, Relative Strength Index (RSI) (14), a loss of momentum is clearly visible. The asset made a higher high on Wednesday at while the RSI (14) recorded a lower high. It is worth noting that a negative divergence signal is not sufficient to claim a bearish reversal. The concept needs more confirmation from other filters.
The greenback bulls are still defending the 10-period Exponential Moving Average (EMA) at 134.69. The 20-period EMA at 133.40 has not attacked yet and is advancing higher, which favors a bullish bias.
A demand zone in a 131.33-131.58 range will remain a major hurdle for the yen bulls.
For a downside move, the yen bulls need to violate Thursday’s low at 134.27. The occurrence of the same will drag the asset towards June 9 low at 133.29, followed by the above-mentioned demand zone.
On the contrary, the greenback bulls will resume the upside move after overstepping Thursday’s high at 136.30. This will expose the asset to register fresh two-decade highs at 136.89, recorded in October 1998, followed by September 1998 highs at 139.91.
USD/JPY daily chart
|Today last price||134.8|
|Today Daily Change||-0.15|
|Today Daily Change %||-0.11|
|Today daily open||134.95|
|Previous Daily High||136.3|
|Previous Daily Low||134.26|
|Previous Weekly High||135.6|
|Previous Weekly Low||131.5|
|Previous Monthly High||131.35|
|Previous Monthly Low||126.36|
|Daily Fibonacci 38.2%||135.04|
|Daily Fibonacci 61.8%||135.52|
|Daily Pivot Point S1||134.04|
|Daily Pivot Point S2||133.14|
|Daily Pivot Point S3||132|
|Daily Pivot Point R1||136.08|
|Daily Pivot Point R2||137.21|
|Daily Pivot Point R3||138.12|