The yen is marginally lower after posting a December low at 102.88. The USD/JPY pair is expected to consolidate above this level as positive divergence on the daily RSI points to stabilisation, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, briefs.
Key quotes
“Since the recent decline in USD/JPY to 102.88 has been accompanied by positive divergence on the daily RSI, we believe that the cross will stabilise above this level.”
“Only a currently not expected drop and daily chart close below the 102.88 current December low would open the way for the April 2009 and July 2013 highs as well as the February and May 2014 lows at 101.54/100.75 to be reached. Further down the 2016 low can be spotted at 99.00.”
“The outlook remains overall bearish while the cross stays below the seven month resistance line at 104.92.”