USD/JPY: yen weakening
Tatiana Norkina, FBS analyst
As expected, the Japanese yen keeps losing positions against the US dollar. Consolidation above the Tenkan and Kijun support in the 118.20 area allowed new buyers to get into the game, and they restored the pair's rate to the 120th figure.
Line of all indicators have turned upwards, supporting the growth.
However, we know there is a powerful resistance in the 120.40/60 area. Apart from that, regarding the Chinkou line location and RSI being above the 70th mark, we can state the pair's local overboughtness with certainty. Consequently, we can expect consolidation at the current levels, with prices return to the Tenkan-sen support, where one can observe quite promising points for buying with goals towards the 121st figure.
Technical levels: support – 119.60; resistance – 120.40, 120.90.
1. Buy— 119.60; SL — 119.40; TP1 — 120.40; TP2 — 120.90.