Previous: USD/JPY Can Maintain Bullish Bias with Hold Above 77.20 (1/26)
USD/JPY
For the USD/JPY it has been a rollercoaster of a week as it surged toward range resistance at 78.25 only to fail and fall back sharply now back to range support near 76.55. The daily chart shows the strength of price action to the downside. To start next week, if we don’t slow down and decline in volatility, the USD/JPY has further downside risk toward 76.00, and maybe even lower toward the record low of 75.55.
So, first we can look for support at 76.55 to give a rally at least toward 77.32 central pivot. Otherwise, we should look for support from 76.00 down to 75.55. For a bounce from 76.55, we should look for a bullish divergence in the 4H chart as the RSI dips below 30. Otherwise, the bearish price action is too sharp to consider countering just because the market is at range support.
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Fan Yang CMT is the Chief Technical Strategist of IBTRADE and FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
