USDJPY Price Pattern Analysis - RSI divergence is insufficient to identify reversal without added confirmation

USDJPY Price Pattern Analysis - RSI divergence is insufficient to identify reversal without added confirmation

19 November 2014, 06:11
Lonny Strike
0
383
  • USD/JPY Technical Strategy: Flat
  • Support: 116.30, 115.37, 113.85
  • Resistance: 117.82, 119.05, 120.27


US Dollar may be vulnerable to a correction downward against Japanese Yen as negative RSI divergence points to fading upward momentum. Nearest  support is at 116.30, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 14.6% level at 115.37. Alternatively, a push above the 38.2% Fib at 117.82 opens the door for a test of the 50% expansion at 119.05.

The mere presence of RSI divergence is insufficient to identify reversal without added confirmation. As such, we will continue to stand aside for now and wait for a more compelling setup to present itself before committing to a position.

Resistance
Support
117.82116.30
119.05
115.37
120.27
113.85

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