USD/JPY Heading Into Oversold Conditions
Jason Sen | May 25, 2017 03:17AM ET
USD/JPY meets quite good support at 111.20/10 for profit taking on remaining shorts from 112.10. A break below this week's low at 110.87/84 however targets 110.75/70 and minor support at 110.55/50. A break below 110.20 then targets important 200 day moving average and 6 month trend line support at 109.99/90. This is the best chance of a low for the week as we head in to oversold conditions. We also have a gap to fill at 109.48 so longs need stops below 109.40.
Minor resistance at 111.80/90 and more important 4.5 month trend line resistance up to 112.10. This remains key to direction but shorts need stops above 112.55. A sustained break above 112.40 signals a more positive breakout to 112.55/60 and perhaps as far as 112.75/80. We should struggle here but further gains test the 500 day moving average at 113.10/15.
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