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USD/JPY may drop to 118.00 – FXStreet

FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, with USD/JPY failing to break above its rising trend line, the pair is likely to test the support at 118.00 levels.

Key Quotes

“The USD/JPY finished lower at 118.59 levels after having faced rejection at the falling trend line resistance on the daily chart. The pair also fell below the 50-DMA located at 118.78 levels.”

“No major action is being witnessed today as the pair trades lackluster around 118.57 levels with the daily RSI bullish at 52.95 levels.”

“Meanwhile, the hourly chart shows, the pair is moving in a downward channel with the RSI stuck at 50 levels.”

“Moreover, USD/JPY is struggling near the channel resistance at 118.60. A failure to rise above the same shall push the pair down to 118.00 levels.”

“On the other hand, a break above 118.80 shall open doors for a re-test of 119.24 levels.”

“Given the failure to rise above the falling trend line on the daily charts, the pair is more likely to test the hourly chart falling channel support at 118.00 levels.”

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