USD/JPY intraday: the RSI is oversold

USDJPY

Trading Central 2021-01-13 03:07:06

Our pivot point stands at 104.18.

Our preference: the downside prevails as long as 104.18 is resistance.

Alternative scenario: the upside breakout of 104.18, would call for 104.50 and 104.68.

Comment: the RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 104.16 and 104.19). Finally, the USD/JPY has penetrated its lower Bollinger band (103.93).

Supports and resistances:

104.68 **

104.50 *

104.18 **

104.06

103.92 last

103.51

103.33 **

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