The USD/JPY pair has bounced from its support zone on a 30 minute time frame as predicted. This support zone was given in our analysis on 3rd of July. The price action has broken its upward trend line for the first time since our last analysis; this simply means that the upward trend has become weaker. Moreover, the price is also trading below the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirms that the bulls are losing their control.
The volatility for the pair is high as the price is trading far from the 20-day MA and it has pierced the Bollinger band. The piercing of the Bollinger band does have a significant importance at an important level of support/resistance and it could reverse the trend or push the price back towards its mean.
The RSI is also trading in an oversold territory which could also help the price to move back up and continue its upward trend.
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Important Levels
Resistance Zone
103-.70-103.19 Major
102.52-102.03 Major
Support Zone
99.73-99.47 Minor
97.19-96.83 Minor
95.25-94.82 Major
93.04-92.48 Major
90.85-90.31 Major
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