USD/JPY – Bounced As Predicted And Now Near Its Resistance Zone
AvaTrade | Apr 24, 2013 06:44AM ET
The USD/JPY pair has bounced back up from its support zone which we predicted in our analysis yesterday. The price action has formed a double top on a 30 minute time frame near its resistance level. The double tops are usually considered as a reversal pattern however, it is important to match these patterns at an important level of support and resistance.
The RSI is not giving any clear signs at the moment. The yellow line on the RSI is trading in line with the price action which means that the price could push the pair further up. However, it’s the double top on the daily chart which could trigger a bigger sell off for the USD/JPY pair.
The red line on the RSI indicator is showing a deflection in relation to the price action which means the strong bias could be towards the downside. So in a nutshell, we need to see the RSI indicator and see which trend line it will break (yellow or red) before the RSI gives us a clear signal.
Important Zone
Support Zone
96.06-95.78 Major
97.48-97.24 Minor
98.52-98.33 Minor
Resistance Zone
99.94-99.76 Major
DISCLOSURE & DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.
by Naeem Aslam
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