USD Set To Correct?
Publish Date : 2019/09/20 - 06:12

USD Set To Correct?


USD/JPY has hit resistance around 108.50 with a bearish engulfing candle (making it a 2-bar reversal pattern near the highs). Whilst an against could be made that prices are trying to reverse against the trend, technically the trend remains bearish below the 109.32 high. So it’s interesting to see that RSI reached over 60 (to suggest overbought in a downtrend) and has now dipped lower to suggest a cycle high could be in place.

  • Regardless of whether this turns out to be a minor or major top, we favour a bearish scenario over the near-term.
  • Bears could look to target 107.2 support or fade into rallies beneath the 109.32 cycle high.
  • A break above 109.32 confirms a trend reversal on the daily chart.

Source:forex.com

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