Sydney Tokyo London New York
real time forex news and technical analysis
German ZEW Economic Sentiment

waiting
14.9
expected
17.5
previous

USDJPY overextended in all time frames

USDJPY Tech analysis by Simon Kazinsky on 20:18 December 07, 2014 EST



USDJPY broke above 120 last week. The Japanese yen has now devalued around 50% since 2012 against the US dollar and very substantially against all other major currencies.

The chart shows price divergence against its supporting moving average at a extreme level and the RSI (relative strength index) indicator at the top end of its band.

Retail traders are now net neutral on this pair.

(continue reading below)



On a longer time frame the weekly chart shows extreme divergence against its supporting moving averages too.

With all this into account my bias remains the same, USDJPY is in a rising cycle but it is overbought in the short/medium term and a correction back to its supporting moving averages is very likely.





Comments



[x]