Forex Flash: USD/JPY momentum stonewalled by resistance – RBS

The USD/JPY has rallied for some time – over 22% from the 2012 lows to the 2013 highs so far – however suddenly the upward momentum slowed and the this all occurred in the cluster of previous highs from 2009 and 2010 (between 93.75 and 94.77). According to Technical Strategist William Moore at RBS, “The RSI, which is at more stretched levels than it has been for at least 5 years is no longer going up and even begin to look like it’s rolling over. This zone between 93.75 and 94.77 is also exactly where the projected target lies from the inverse head and shoulders target as shown adjacent. It’s possibly too soon to call a reversal of trend but there are more signs now than previously, watch closely for weekly closes sub 92.32 as another sign.”