USD/JPY Price Analysis: Further recovery eyes 14-month-old trendline
- USD/JPY manages to bounce off a nearly four-year low.
- Oversold RSI, risk reset seem to favor further pullbacks.
- The falling trend line from January 2019 offers the near-term key upside barrier.
USD/JPY recovers 1.0% of the previous day’s flash-crash losses while taking the bids to 103.40 during early Tuesday. In doing so, the quote bounces off the lowest since late 2016 amid oversold RSI conditions.
While odds are high for the pair’s further pullback towards 104.00, a downward sloping trend line since January 2019, at 104.55, seems to challenge the buyers afterward.
Should there be an additional recovery past-104.55, October 2019 low surrounding 106.50 can flash on the bulls’ radars.
Alternatively, the intra-day low near 102.00, followed by Monday’s bottom of 101.18, can offer rests to the short-term sellers.
Though, any downside below 101.18 might not refrain to challenge the 100.00 psychological magnet.
USD/JPY daily chart
Trend: Further recovery expected