USDJPY Price, Chart and Analysis:
- USDJPY continues to push ahead but trading range is narrow.
- RSI indicator warns of overbought conditions.
Q1 2019 Japanese Yen Analysis and Forecast.
USDJPYis treading water just under recent three-and-a-half months highsas the greenback continues its push higher. The pair trade above all three moving-averages, including the closely watched 200-dma, and now look set to break back above 112.00 and towards a cluster of horizontal resistance levels between 113.71 and 114.74, the November 2017 high print. Later in the session the ISM non-manufacturing and services composite PMI is released with expectations of a pick-up to 57.3 from January’s reading of 56.7.
A positive beat could trigger the next move higher in USDJPY, but the market is flashing one technical overbought signal with the RSI indicator currently just below 70, suggesting short-term caution.
Daily pivot points show resistance at 111.94 (R1) followed by 112.14 (R2) ahead of 112.49 (R3).
USDJPY Carves Bullish Series Even as ISM Manufacturing Disappoints.
USDJPY Daily Price Chart (June 2018 – March 5, 2019)
Retail traders can access the latest IG Client Sentiment Data for a range of currencies and commodities. The data shows how retail positioning, and daily and weekly changes, can help when looking for a trade set-up. Retail are 37.3% net-long USDJPY, a bullish contrarian set-up.
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on the USDJPY – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
