USD/JPY- Trading In A Support Zone
The USD/JPY pair bouncing from its support of (114.24-113.73) on a 4 hour time frame. The support zone does has a significant importance as the price has not touched this level since November 2015. The price is still trading below the downward trend line and as long as the price stays below this line, the bias remains towards the downside. However, the price is also trading within the Bollinger band and this confirms that the volatility is low.
However, the strongest signal comes from the RSI trend line, which confirms that the momentum has bounced back up from its oversold zone and it is trading in line with the price action and therefore the bias is that we may be able to break this downward trend line.
118.25-117.91 Minor Resistance
120.05-119.60 major Resistance
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam