USDJPY Tech analysis by Simon Kazinsky on 06:00 February 05, 2015 EST
As covered on our technical analysis for previous weeks this pair appeared overbought in all time frames and was due for a correction or at least a period of consolidation.
USDJPY is now stuck in a range in the 115-120 area and supporting moving averages have now caught up on the 8h chart and are narrowly above current price.
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The upside, based on maximum divergences in the past, suggests a maximum target of 124 whereas long term supports sit now at 108 and 100. USDJPY trades at the time of writing at 117.40.
With this in mind, albeit admitting the overall structure is constructive, the bias is now neutral awaiting for better reward/risk ratios.
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