- USD/JPY hit a weekly high of 134.46 but pulled back towards the 134.10 zone.
- USD/JPY Price Analysis: Negative divergence between oscillators and price action could pave the way to the downside.
He USD/JPY it consolidated around the 134.00 area after reaching a daily high of 134.46, although bears intervened around the weekly highs, dragging the price lower. Thus, the USD/JPY reversed course and posted minimal losses of 0.08%. On Thursday, the pair trades around 134.15.
On February 15, the USD/JPY pair reached a daily high at 134.35, and since then, the USD/JPY pair has remained sideways within the 133.60/134.30 zone. Even though the Relative Strength Index (RSI) is in bullish territory, as USD/JPY price action has headed north, the RSI has not. Therefore, a negative divergence could emerge, suggesting that a price reversal is in the offing.
If this scenario holds, the first support for USD/JPY would be this week’s low at 133.60. If broken below, the 20 day EMA would be exposed at 133.28, followed by support from the February 13 daily high at 132.90.
In an alternative scenario, USD/JPY’s first resistance would be the daily high at 134.46, which, once broken, could lift USD/JPY to a Jan 6 high of 134.77 before major pairs rally to 135.00.
USD/JPY Daily Chart
USD/JPY Key Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
