USD/JPY Extends Losses After Strong Bull Run


Dollar Yen Technical Outlook: Bearish

  • USD/JPY RSI factors decrease after two consecutive weeks of losses
  • DollarYenpotential pullback or reversal?
  • Price motion falls beneath the 50 SMA (shifting common), 130.00 – 136.00 stays key.

USD/JPY Extends Losses, Weekly RSI Points Lower

USD/JPY has continued to maneuver decrease because the narrowing of yield differentials and softer financial knowledge limits Dollar energy.

With a hawkish Federal Reserve and aggressive fee hikes fueling the steep rally, the main currency pair has skilled two weeks of consecutive losses after reaching a recent 24 yr excessive in mid-July.

After the formation of a golden cross (50 MA crosses above the 200 MA) on the weekly time frame, bulls continued to drive value motion greater earlier than operating right into a wall of resistance slightly below the 140.00 psychological deal with.

While this degree holds as important resistance for each the quick and longer-term transfer, the weekly RSI (Relative Strength Index) has retreated from overbought territory with the 132.5 mark (weekly low) forming as assist.

USD/JPY Weekly Chart

Chart ready by Tammy Da Costa utilizing Buying and sellingView

However, the each day chart beneath highlights the style by which the 50-day MA (shifting common) has offered further assist for the uptrend. With sellers quickly driving decrease, the a break of 132.00 may see a rise within the momentum of the downtrend with the following degree of assist holding on the 38.2% Fib of 127.84.

USD/JPY Daily Chart

Dollar Yen Forecast: USD/JPY Extends Losses After Strong Bull Run

Chart ready by Tammy Da Costa utilizing Buying and sellingView

But, if bears fail to realize traction, a maintain above 132.5 and above the 50-day MA (134.26) may enable for a retest of 137.27 and in direction of that 140 spot.

— Written by Tammy Da Costa, Analyst for

Contact and comply with Tammy on Twitter: @Tams707

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