JPYBASKET Tests Daily Moving Average Support

The left chart shows FXCM's JPY index, the JPYBASKET. It is trading at the black 20-day SMA, which is acting as support(green ellipse). The SMA is still pointing up and the RSI is above 50 (blue rectangle). As long as these dynamics hold, bullish momentum maintains. However, if price drops below the SMA and the RSI dips below 50, the momentum will turn bearish. The right chart shows the hourly time frame. The index has pulled back to the 76.4% Fibonacci retracement level. For the daily momentum to stay positive (left chart), we would need to see the index bounce from these levels and the hourly RSI move above 50 (green square).