Forex Technical Analysis USD/JPY 2013-10-01
Surging trend line was breached in earlier trading increasing potential for weakness in the currency pair. In addition, prices formed a “failure swing” pattern with neckline at 97.74 with 100 and 50 SMA weighing on prices, however today they returned back above the 97.74 underpinned by some macro events.
Concerning oscillators,MACD dropped into negative territory and RSI (14) is down trending suggesting downside bias. We consider that negative sentiment has strengthened although bulls still hold their ground due to recent return above the “failure swing” neckline.
Our opinion based on technical signs lean towards downward enhancement toward 96.79, where the 161.8% of 97.74 to 99.66 is also nearly located coupled by 200 SMA.