USD/JPY (a 4-hour chart)
The US dollar weakened against its main peers following the recent US data. Traders were cautious ahead of U.S. Building Permits release.
The 4 hours chart for the pair presents a moderate bearish potential. The price finally broke the consolidation range and made a good break below 104.00. Sellers pushed the quotes towards 103.00. The 50-EMA stopped the downward momentum in the 4 hours chart. The moving averages (50, 100 and 200) extended their growth. The resistance can be found at 104.00, the support comes in at 103.00.
MACD entered the oversold area. MACD decreased which indicates the buyers’ positions weakening. RSI moved towards the overvalued levels.
The USD/JPY is approaching the 103.00 level. A move below the level would indicate that the immediate upward pressure eased. In this scenario, sellers will push the price further towards the 102.50 region. A bounce off the 103.00 level will return buyers in the game.