It can be helpful to look at key pivots in RSI; in the case of JPY, the 60 level has been significant have led to an important top in Aug and 2 key bottoms in Dec. & Jan. Momentum has again fallen to this level as prices trace a bullish triangle so it worth watching to see if the RSI 60 level can hold. Rather than correct in a sharp zig-zag it appears prices are marking time with sideways trade. (ch1) S/t, there is still no impulsive move that suggests a rally through triangle resistance at 94 but yesterday’s pullback did find support at a triangle target where wave-a was .618(wave-c). Support is now 92.77 with the more critical triangle uptrend at 92.29. A break through 94 can see a quick rally to the 2010 highs at 94.99, that level is also the triangle projection. Although expected we need wait for a break of 94 to signal a bullish resolution. (ch2) Levels: Support – 92.77, 92.29, 92.00 Resistance – 94.00, 94.22/46, 94.99.
Nomura