USD/JPY: the bulls need a break
USD/JPY jumped to 115.50/60 before returning below 115.00. Traders took profit as they considered the pair’s advance too rapid.
Daily RSI is above 70, so the pair is overbought. At the end of August and most September RSI and Stochastic were also at the overbought levels, but the pair was constantly rising, but MACD was gradually moving up from the low levels. Now MACD is already much higher than it used to be.
Analysts at SEB Bank point out that USD/JPY started correction lower. In their view, the key short-term support is in the 111.60/110.09 zone.A fresh high, breaking 115.52/59 will abort or at least delay the correction.
Commonwealth Bank of Australia expects a period of consolidation in USD/JPY in the 110 yen area.