USDJPY Daily Analysis on Feb 29, 2016
USDJPY daily analysis:
Chart H4: USDJPY currency pair has been in a correction today, after surging in four consecutive candles, up more than 1.2 percent from 112.593 recorded on last Friday to hit the high of 113.961.
The Japanese Yen is heading to pair all of its gains in the last trading days and already broke through the 23.6 Fibonacci retracement. The retreat is expected to last until the price cuts the MA50 line and makes a reversal.
Currently, at the morning Asian session, the RSI has lowered to 55.43, indicating that the bull is stronger but the bear is coming in.
Chart D1: In a larger time frame, the pair, which bounced back from 23.6 Fibonacci resistance in the opening of today’s session, is heading toward the support of 112.392 Yen per U.S dollar, the low from Feb 11. The safe haven asset is extending its rally from December 18.
The MA50 (blue line) cut the MA100 (red line) from below, with the distance gets further, showing the slide is still strong. The RSI has inched down to 40.95, indicating that the strength is tilled toward the bear.
Daily chart’s resistance levels: 114.518 / 115.030
Daily chart’s support levels: 112.392 / 110.942
H4 chart’s resistance levels: 113.488 / 113.961
H4 chart’s support levels: 112.456 / 111.978
Trading recommendations for today: Sell at 113.400, Take Profit at 112.390, Stop Loss at 113.910.