On Monday USD/JPY decreased with 115 pips. The currency couple depreciated from 88.38 to 87.22 yesterday, matching the negative money flow sentiment at under -16%, closing the day at 87.76. This morning the dollar is trading quietly against the yen, with movements at the lower end of yesterday's range for now.
On the 1-hour chart the upward channel has slowed down, while on the 3-hour chart the upward channel is still intact. Break above yesterday's top and nearest resistance 88.38 would encourage further recovery of the dollar. Immediate support is yesterday's bottom at 87.22, and consistent break below it could strengthen the yen further down towards next target 86.44.
There are no major economic events for Japan today.
Quotes are moving just below the 20 and above the 50 EMA on the 1-hour chart, indicating short-term slim bearish and medium-term bullish pressure. The value of the RSI indicator is positive and calm, MACD is positive and tranquil too, while CCI has crossed down the 100 line on the 1-hour chart, giving over all neutral signals.
Technical resistance levels: 88.38 89.30 90.12
Technical support levels: 87.22 86.44 85.60