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Forex Analysis: USD/JPY Rally May be Losing Steam

Ilya Spivak

Strategy: Flat

Prices broke above the 90.00 figure to challenge rising channel resistance at 90.97. A break above that targets the 38.2% Fibonacci expansion at 91.32. Negative RSI divergence warns of ebbing bullish and hints a turn lower may be ahead however. A reversal back below 90.00 aims for the channel bottom at 88.74. We will look for a pullback to yield a long trade setup in line with our long-term view.

Forex_Analysis_USDJPY_Rally_May_be_Losing_Steam_body_Picture_1.png, Forex Analysis: USD/JPY Rally May be Losing Steam

4hr Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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