USDJPY: weekly review (06/02)
Tatiana Norkina, analyst at FBS
Daily. The currency pair continues to consolidate within the cloud. The range of motion of the pair maximum narrowed and is limited by top line Tenkan-sen. Note that the Tenkan and Kijun lines have recently formed a dead cross, which causes the market to remain in the area of the cloud.
At the same time bears are not so active. Maybe the reason is in the local oversold of the pair USD/JPY because Chinkou Span is located in the area.
Chart. Daily USD / JPY
H4. At the four-hour time frame the situation is even more complicated. Although prices location is below the cloud, Kijun and Tenkan lines moved in a flat interseсting several times. Consequently, one cannot claim about the uniqueness of their testimony. Bears can only hope for a cloud that can become a powerful resistance for the bulls. In this case the currency pair could not avoid the value of 116.00.
Chart. H4 USD/JPY