Nick Nasad
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USD/JPY - Where to Next for Pair's Correction - Stall Out or Push Further?

Risk sentiment was more calm today, as US equity markets moved sideways, digesting the losses from earlier in the week. One key pair to monitor then is the USD/JPY, as where it goes tends to lead the rest of the JPY crosses and during times of swings in risk sentiment, the JPY's can have some of the best opportunities.

Looking at the USD/JPY in the 1HR timeframe, the question I have currently is where will the current correction stall . The pair tests the 55-EMA in this timeframe with the 200-EMA coming in at around 97.90. The RSI has reached the 60 area and if bears are in control, we may expect to see the pair turn around somewhere near here as a result.

If however, the pair manages to push through its short-term local high at 97.83, and then take out the 200-EMA, then the bearish impulse and momentum seen since the beginning of the week is likely negated.

- Nick