USDJPY could contain last Friday slide to 105.24 but its rebounding faced resistance at 106.46 and now it is trading near 106.15.
USDJPY is now trading in its fifth day below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 107.48 after bottoming out last Friday at 105.24.
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 depressed by forming series of lower highs persisted its descending channel, after breaking out its key supporting level at 110.83.
While making lower low at 105.24 below last Feb. 16 low at 105.54 keeps the pair vulnerable to the downside.
USDJPY daily RSI-14 is referring now to existence inside its neutral territory reading 37.064 hovering over its oversold area below 30.
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 47.548 leading to the upside its signal line which is lower in the same region at 39.763, after convergence to the upside by bottoming out at 105.24.
Important levels: Daily SMA50 @ 109.16, Daily SMA100 @ 111.07 and Daily SMA200 @ 111.10
S&R:
S1: 105.24
S2: 101.18
S3: 100.07
R1: 106.46
R2: 107.90
R3: 110.48
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din