The USD/JPY has formed a V bottom on a 60 minute time frame. However, the general trend is still the side pattern and the price is still consolidating between the 102.68-100.92 zone and only a break out of this zone will further confirm the trend direction. The general bias could be that the breakout may take place to the downside, because before we started consolidating in this zone, the trend was to the downside.
The RSI is showing a clear sign of negative divergence in relation to the price action which means that the bias could be to the downside.
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Important Zones
Resistance Zone
103.67-103.40 Minor Support
102.97-102.68 Major Support
Support Zone
100.92-100.70 Major Resistance
99.78-99.54 Minor Resistance
Disclosure & Disclaimer:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader. by Naeem Aslam