USD/JPY eyes 162
Updated
Another day, another handle for USD/JPY which tapped the 162 level for the first time in over 37 years on Monday. The daily chart clearly shows a strong uptrend although a bearish divergence has formed on the RSI indicator in the overboard zone. This brings the potential for a pullback although this seems unlikely unless the ministry of Finance intervenes.
The one-hour chart shows prices have a traced lower from Monday's high and holding above the 20-bar average and daily pivot point. RSI reached oversold Near yesterday's low so perhaps a swing low is already in place.
The bias is for a move towards 162, near the upper one-day implied volatility level and monthly R1 pivot. Some profit taking around 160 He wouldn't be too much of a surprise, so we're equally open to a pullback as we are for prices to continue higher - depending on whether the mainstream finance field needs to intervene once more.
The one-hour chart shows prices have a traced lower from Monday's high and holding above the 20-bar average and daily pivot point. RSI reached oversold Near yesterday's low so perhaps a swing low is already in place.
The bias is for a move towards 162, near the upper one-day implied volatility level and monthly R1 pivot. Some profit taking around 160 He wouldn't be too much of a surprise, so we're equally open to a pullback as we are for prices to continue higher - depending on whether the mainstream finance field needs to intervene once more.
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