USD/JPY finishes off revival hopes.

USD/JPY gave up ground in the intra-day level and the short term, following previous gains that raised hopes of reviving the main upward trend in the medium and long terms; but then it resumed the decline, finishing off these revival hopes, accompanied by negative pressure from the simple moving average for the period 50, settling again below the resistance of 121.58, which represents the ratio 38.2% of Fibonacci retracement levels for an ascending wave in the short term (from 118.08 to 123.75); while noting that relative power indicators have reached extremely oversold levels.

 

We therefore expect the pair to decline further, but it could trade within a tight range below the resistance of 121.58 in an attempt to siphon off that oversold saturation at relative power indicators, to resume thereafter its decline, targeting the support of 120.24, which represents the ratio 61.8 of the same retracement levels mentioned earlier.