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USD/JPY running into negative technical sentiment

FXStreet (Guatemala) - USD/JPY is slowing up on the bid and has run into supply capping the uptrend of late just below the key and psychological 109 handle.

Richard Perry, Market Analyst at Hantec Markets explained the consolidation is threatening to form an intraday top pattern. “The support at 108.48 is intact and guards against a near term top pattern completing that would imply a correction back towards 107.50, whilst the initial old breakout support comes at 107.40”.

USD/JPY hourly bearish indicators

In relation to the indicators around this phase of consolidation Perry highlighted that the hourly momentum indicators have been falling away for the past couple of days now and explained that this is a concern. “Certainly with the hourly MACD lines now turning negative”. And he added,”If the hourly RSI begins to fall below the 40 mark which has been a low over the past 48 hours then the prospects of a near term top will grow”.

USD/JPY support and resistance levels

Support levels: 108.65 108.10 107.70

Resistance levels: 109.45 109.80 110.10

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