Source: ForexYard
The USD/JPY pair saw a very strong bullish trend in February, reaching as high as the 83.96 level. However, once the pair climbed towards almost 84.00, a sudden correction took place which was only stopped at the 81.60 level. Currently, the pair is once again testing the significant support level, if it falls below it, another sharp depreciation may take place.
• The chart below is the USD/JPY 4-hour chart by ForexYard.
• By February 4th the pair saw a strong bullish move, which was sharply reversed on February 16th. During the bearish correction, the pair has erased almost all of its gains.
• The Slow Stochastic has lately completed a bearish cross, signaling that another downward movement could take place soon.
• The RSI has recently climbed above the 30-line, just to fall below it again shortly after. This indicates that the bullish momentum was very poor, and that another bearish session is likely to take place.
• There is a very strong support level placed at 81.60. If the pair will fall below the support level, it is likely to drop towards the 81.30 level, followed by the 81.10 level.
• The next resistance levels are placed at the 82.00, 82.30 and 82.55 levels.
Forex Market Analysis provided by ForexYard.
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