After forming a lower low at 104.62, USDJPY could bounce up touching 107 level before residing for trading near 106.60 during the Asian session.
USDJPY rising yesterday to 107 level drove it be again above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 104.67 in its second day of being below the trading rate.
The downside momentum of USDJPY eased down, but it is still undermined by continued trading well below its daily SMA50, its daily SMA100 and also its daily SMA200.
USDJPY is still vulnerable to the downside, as it is still exposed to forming lower high below 107.90 resistance which has been last Feb. 21 high.
Forming series of lower highs made the pair descending channel which reached lower low at 104.62 on increasing of the downside momentum following breaking key supporting level at 105.24 which has been last Mar. 2 low.
USDJPY daily RSI-14 is referring now to existence in a higher place inside its neutral territory reading 50.606.
USDJPY daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line inside its neutral region at 71.500 leading to the upside its signal line which is lower in the same region at 51.564, after convergence to the upside by bottoming out at 104.62 inside its oversold area below 20.
Important levels: Daily SMA50 @ 107.41, Daily SMA100 @ 109.93 and Daily SMA200 @ 110.77
S&R:
S1: 104.62
S2: 101.18
S3: 100.07
R1: 107.01
R2: 107.90
R3: 110.48
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din