USD/JPY - H1
The pair started the week on the back foot and as the US markets open, it faces more selling pressure and deepens its correction, after the multiyear highs of October.
With multiple lower highs and lower lows in November and just one profitable day, optics are not good, as it breaches the 38.2% Fibonacci of its October low/high rise (113.20). This brings 112.40-23 in to the spotlight, but JPY does not seem ready to threaten it and daily close beyond 113.20 would be needed to pause the broader uptrend.
USD/JPY tries to hold 113.00 and current levels have the ability to provide support, as the RSI moves to oversold territory. This can lead to a recovery effort, but rising back above the EMA100 (110.70-80) appears to be a tall order under the these conditions, while the downward trend line form October highs (at around 114.30) is far into the background.
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Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.