USD/JPY gains capped at 117.97 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, shares that USD/JPY gains are being capped by the channel resistance at 117.97 levels, further noting that an upside move above this is highly unlikely.

Key Quotes

“The USD/JPY pair finished lower on Wednesday at 117.27 levels, although it did recover from the low of 116.09 levels. A sharp recovery has been extended today, as the pair rose to trade at 117.97 (50-DMA) level, with the daily RSI still bearish at 44.91 levels”

“On the hourly chart, the pair re-entered the falling channel yesterday, with gains being capped at the channel resistance located at 117.97 levels. Further gains can be seen if the pair manages to confirm a break above 117.97 on the hourly charts. Given, the hourly RSI is bullish at 62.59 levels, such a move appears possible. However, the pair faces multiple resistance in the range of 117.97 to 118.20 levels.”

“Furthermore, the momentum appears to be fading on the 15-minute chart where the RSI has flattened out closer to overbought levels. Thus, the pair is likely to a dip towards 117.60-117.40 levels, before resuming further upmove.”