Michael_Macdonald-XATSUK

USDJPY close to strong resistance. Risk of a corrective pullback

FX:USDJPY   U.S. Dollar / Japanese Yen
There has been no change in the dominant USD/JPY trend, with prices extending the rally from the 101.15 low of November.

Focus is now on the 115.60 retracement and 115.96 break level from January, but any immediate break is expected to fade beneath congestion around 117.00, as short-term studies are already overbought and stochastics remain overstretched.

Any corrective pullback, however, should stabilise above the 112.84 low of 5 December, as background studies remain bullish and investors maintain a buy-into-weakness strategy. If broken, not seen, a deeper pullback will be signalled, with focus then turning to the 110.00 break level