Japanese Yen watches bearish divergence as it continues to trade towards the 114.00 level with the US dollar index climbing towards it’s highest trading level in nearly three weeks. However, what does the growing divergence indicate?
1 October, OctaFX – The USDJPY is solidly bid around 113.90 in early Europe, having clocked a 13-month high of 113.96 in Asia.
Japanese Yen Watches Bearish Divergence
Bearish MACD divergence can be seen on the lower time frames as the USDJPY pair starts to move into overbought territory. The growing divergence between the Fed and the BOJ indicates the path of least resistance is to the higher side.
Buyers will likely aim for the 114.43 level, while sellers will look for signs of price exhaustion at current levels.
- The USDJPY pair is bullish while trading above the 113.17 level, key resistance is now found at the 114.00 and 114.43 levels.
- If the USDJPY pair moves below the 113.17 level, key support is found at the 112.92 and 112.56 levels.
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