Divergence on USD/JPY

Divergence on USD/JPY

The current technical pattern signals a possible correction of the USD/JPY currency pair after continuous growth. A classic reversal formation, the divergence of price and MACD histogram (H1 timeframe), has been formed in the trading instrument. At the moment, USD/JPY quotes are stable. A round level of 110.000 is immediate support. We recommend paying attention to this situation.

If the price fixes below 110.000, USD/JPY sales should be considered. The immediate goal for profit taking is 109.700. The movement is tending to 109.450-109.000. Confirmations and market entry points should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.

by JustForex 2020.01.20

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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