Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Global Head of Macro Strategy
Technical Analyst, Saxo Bank
USDJPY touched the 0.6518 retracement at 144.62 and has formed a doji morning bottom and reversal-like pattern (circled, not textbook perfect but nevertheless) indicating a rebound.
Despite RSI not showing divergence, we could still see a bounce up to the resistance at around 149.40.
Indications of this scenario playing out include RSI closing back above the 40 threshold.
A break below the low of the doji candle will demolish the reversal pattern and likely push USDJPY lower to 143.30, possibly even below 142.50