USD/JPY might see a short-term downward correction – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, believes that USD/JPY might witness a short-term downward correction, with the pair failing to advance above the key psychological barrier at 120.

Key Quotes

“The USD/JPY pair advanced up to 120.04, finally halting the rally around the key psychological figure.”

“The pair is founding intraday support in rising stocks around the world, and the 1 hour chart shows that the price extended above the 100 and 200 SMAs, although indicators are beginning to look exhausted in overbought territory, suggesting an upcoming short term downward correction.”

“In the 4 hours chart the price stands around the 200 SMA, whilst the technical indicators are well into positive territory albeit also losing upward strength.”

“The immediate support comes at 119.65, and sellers should surge on approaches to the level, whilst only an upward acceleration above 120.10 should signal further intraday gains towards the 120.80 price zone."

“Support levels: 119.65 119.20 118.80”

“Resistance levels: 120.10 120.45 120.80”

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