USD/JPY rates look poised to extend their trek lower after failing to climb back above confluent resistance at the trend-defining 50-day moving average (106.23) and Schiff Pitchfork parallel.
Although price has recovered significantly since collapsing 2.4% from the monthly high (106.55), the recent topside push appears to have validated the downside break of the uptrend extending from the March low (101.18) and suggests further losses may be afoot.
Moreover, with the RSI continuing to respect the downtrend extending from the June highs and price tracking below the 21-, 50-, 100- and 200-DMAs, the path of least resistance seems to be lower.
Therefore, should USD/JPY remain capped by psychological resistance at the 106.00 level a retest of the 2019 low (104.45) looks on the cards, with a daily close below the September low (104.00) needed to bring the yearly low (101.18) into play.
Contact our advisors through website chat