Thursday, January 19, 2017

USD/JPY Is Testing The Resistance Trend Line




USD/JPY has been moving in a clearly defined trend channel during its move to the downside from 118.606 to the low at 112.569.



The limit of the RSI divergence on the 1H time frame for this pair was at 113.883. USD/JPY, however, managed to climb with over 100 pips more, reaching 114.971, i.e. reaching the resistance line of said trend channel and for now it is consolidating close to it, likely to test it.

If the pair breaks above the trend line and continues moving to the upside the next possible resistance it could test is at 115.50.

In case it cannot break above the trendline I think it will renew its move to the downside.

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