USD/JPY Bounces of the 200-hour SMA and above 99.00

by Admin

Awards 2013

USD/JPY 1H chart 4/23/2013 9:22AM EDT


Resistance at 100, 200-hour SMA: The USD/JPY failed to breach 100 during the 4/22 session and retreated below 99 by the 4/23 European session. As we get into the 4/23 US session, USD/JPY was showing a bullish divergence in the 1H chart with the RSI as it tested the 200-hour SMA. So far, we are seeing support there bringing the USD/JPY back above the 99.00 handle, keeping a very slight bullish bias in the near-term as price “slingshots” up from the 200-hour SMA.

The 99.50 area has some minor resistance pivots. Also if the market has topped off, the 1H RSI should probably find resistance at 60. Then, a break below the 200-hour SMA and 98.50 could open up some lows in the 97.20-97.35 area, and then the 98.78 pivot.