USDJPY opened the new week on an upside gap at 108.10, after closing last week at 107.52 following dipping to 107.31 last Friday which is its lowest recorded level since last Nov. 14.
USDJPY reached 107.31 after watching increasing downside momentum following breaking its key supporting level at 108.05 which could prop it up on last Apr. 17.
USDJPY is still trading well below its daily SMA50, its daily SMA100 and also its daily SMA200 in its fourth day of consecutive being below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading 110.33 today.
USDJPY is still exposed to forming a lower high to resume this descending channel, after failing to get over 111.04 resisting level forming a lower high at 110.67 at the end of last August.
USDJPY daily RSI-14 is referring now to existence inside its neutral territory reading 41.030.
USDJPY daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line inside its neutral region at 27.223 leading to the upside its signal line which is lower in the same region at 23.664 after bottoming out above the oversold area below 20.
Important levels: Daily SMA50 @ 111.16, Daily SMA100 @ 112.32 and Daily SMA200 @ 110.33
S&R:
S3: 107.31
S2: 106.03
S3: 104.96
R1: 110.67
R2: 111.04
R3: 112.20
Have a good day
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din