FXStreet — After the bearish Wochengap was closed, the USD/JPY to positive dynamics and a part of the downward movement, with the disappointing US data on Friday to reverse.
Currently, the trade will take place at 113,65/70, just a few Pips from the days high far, which has been formed in the last hour. The positive opening of the European stock markets reduced demand for the safe haven of the JPY. With the Asian trade, trading at 113,00 took place, according to the geopolitical tensions around the Korean Peninsula once again been rekindled.
Add to that the slight recovery of the US Treasury bond yields, which supported the Couple with the European trade.
The markets seem to have better-than-expected results in the PPI, Japan’s already left behind. Later awaits us, various US economic data, the short-term-minded traders with a possibility to offer.
The FXStreet Analyst Omkar Godbole writes: «The bearish RSI divergence on the 4 hour chart and the bearish MACD Crossover, along with the oversold conditions of the day, RSI, to open the way for a deeper Pullback to the 113,00 (100-day MA and 10 day MA) and 112,50. Trips under 112,50 are likely to be only short-lived, while the 5 — and 10-day MA to rise. Only a close above 114,37 (previous High) will make for a bullish Outlook.»
** FXStreet News Editorial, FXStreet**