USD/JPY: Dollar Takes a Breather after Hitting New 24-Year High vs Yen

Technical analysis of Forex market

The USDJPY eases from new highest (137.00) since 1998, posted on Wednesday, as dollar loses traction on concerns that economic growth slowdown and possible recession may shorten Fed’s tightening cycle, that signaled traders to take profits.

Larger uptrend remains intact and the pair is on track for 5.6% monthly gain, though risk of deeper correction was signaled by daily RSI and stochastic diverging from the price action for some time and fading bullish momentum, but Q3 results will be eyed for further signals.

Fresh weakness initial support at 135.70 (10DMA), which guards more significant levels at 134.56/26 (20DMA / June 23 trough, where dips should find firm ground, while break would lead to stronger correction and put bulls on hold.

Res: 137.00; 137.28; 137.63; 137.92
Sup: 135.70; 135.11; 134.26; 132.93

Signal2frex reviews