USDJPY slips on profit-taking - Technical Analysis - 02-02-2016
USDJPY gave up ground in the intraday levels, as traders take profits of the pair's previous sharp rises in the short term, while also the pair tries to find a bottom to bounce off it higher, with the ongoing positive pressure from the SMA50, while relative power indicators have reached overly oversold levels, hinting at a forming positive divergence in the Stochastic indicator as shown below the attached chart.
Therefore we expect the pair to bounce higher in the coming trading, targeting the resistance of 121.84, which represents the ratio 76.4% of Fibonacci retracement levels for a descending wave in the short term (from 123.66 to 115.97).
Trend
Bullish