Oct 03 2018

USDJPY – Bearish engulfing with price divergence on a daily chart

USDJPY:- The Japanese Yen against the US. Dollar is trying to stop its current losses, as on the technical path there are certain price reversal signals are formed on the daily chart. A double candlestick reversal pattern called Bearish Engulfing is formed on the top of daily chart resistance, the blue candle has fully engulfed the real body of previous candle (Red Colored candle)-signalling the bears strength. Momentum indicators are hovering in their overbought territories, Relative Strength Index 14 Day is at 68.80 and Slow Stochastic is at 86 mark. Bearish Price divergence are clearly visible in RSI 14 day, Price action have higher highs while in indicator the compared swings have formed lower highs – suggesting a strong bearish signal. According to technical studies, I am expecting a fall towards 111.10 mark. Any close above 114.06 will negate the above view.