On Tuesday USD/JPY decreased with 135 pips. The currency couple depreciated from 89.63 to 88.27 yesterday, matching the negative money flow sentiment at around -21%, closing the day at 88.78. This morning the dollar weakened further against the yen, reaching 87.78.
On the 1-hour chart the upward channel has slowed down, while on the 3-hour chart the upward channel is still intact. Break above yesterday's top and nearest resistance 89.63 would encourage further recovery of the dollar. Immediate support is today's bottom at 87.78, and consistent break below it could strengthen the yen further down towards next target 86.90.
Today is Japan Tertiary activity index at 23:50 GMT.
Quotes are moving just below the 20 and 50 EMA on the 1-hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is positive and tranquil, while CCI has crossed down the 100 line on the 1-hour chart, giving over all light short signals.
Technical resistance levels: 89.63 90.50 91.30
Technical support levels: 87.78 86.90 86.10USD/JPY Chart" title="USD/JPY Chart">