The Japanese yen advanced after a slower-than-expected GDP contraction in Q1.
The US dollar has come under pressure in the supply zone near 110.30, the origin of April’s sell-off.
The RSI’s repeated rise into the overbought area is an indication of exhaustion in the upward momentum. The pair is now testing the trendline from April which coincides with the psychological level of 109.00.
As the RSI recovers into the neutral area, we could expect strong buying interest. 109.80 is an intermediate resistance on the way up.
