May 19 2018

USDJPY – Limited upside, correction about to come

USDJPY:- Japanese Yen against US. Dollar is reaching towards its critical support/demand zone, or in other words we can say Yen is going to stop its losses against the US Dollar. A downward sloping trend-line – connecting the lower highs from mid of 2015 to early 2018 is projecting a critical resistance for the pair USDJPY. Upside seems limited in the pair, as momentum indicators are hovering in overbought region. 14-Day Relative Strength index reached above 70 and Slow Stochastic is presently at 88 mark, in the recent past – both the indicators have diverted their direction against price action – as indicators have formed its recent peaks at an equal pace, while the price action is trading with higher highs. According to the studies we suppose upside to be capped at around 111.70-112.00 mark, while the room for downside is open quite wide – towards 108.00 level.