USD/JPY Makes Another Attempt To Break Below 112.00

The USD/JPY support zone around 112.00 – 112.40 turned out to be very strong, because this is the fourth unsuccessful attempt to break below it and although every new attempt forms a new low a few pips below the last one the pair rebounds from it every time.

The last low that formed today at 112.049 was part of a movement within a trend channel that ended with a RSI divergence visible on the M15 and M30 time frames. The limit of that divergence isn’t that large – it’s at 112.545, which means that the pair has reached and surpassed it, so I wouldn’t be surprised if USD/JPY renews its attempts to break below the support zone.

These days the USD is weak compared to most other currencies, which is another reason to expect a renewal of the move to the downside.

Still, if the move to the upside continues I think the pair will rise toward 113.00 – 113.50.