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USDJPY pokes key resistance, US inflation, Japan's GDP eyedUSDJPY jostles with a fortnight-old horizontal resistance as buyers turn cautious ahead of this week’s US inflation and the first readings of Japan’s Q1 2024 GDP. In doing so, the Yen pair struggles to extend the previous week’s recovery from the 50-SMA. That said, the near-50 RSI levels join the receding strength of the bearish MACD signals to suggest a continuation of the quote’s latest rebound within the bullish trend channel comprising levels marked since late 2023. It’s worth noting, however, that a clear upside break of the immediate 155.20-156.00 resistance zone becomes necessary for the bulls to retake control. In that case, the upper line of the previously stated bullish channel, close to 159.00 by the press time, will precede the 160.00 psychological magnet and the year 1990’s peak of 160.40 to lure the buyers. Meanwhile, softer US inflation and upbeat Japan growth numbers could trigger the USDJPY pair’s retreat toward the mid-April swing highs around 154.80. However, the 50-SMA and the aforementioned bullish channel’s bottom line, respectively near 152.50 and 152.00, could challenge the Yen pair sellers afterward. In a case where the quote remains bearish past 152.00, the 150.00 threshold will act as the final defense of the buyers. Overall, the USDJPY pair remains bullish, despite the latest inaction, but the upside room remains limited.
by MTradingGlobal
USDJPY rebound appears elusive below 155.70USDJPY bounces off a one-month low to snap a three-day winning streak early Monday. In doing so, the Yen pair takes a U-turn from the 61.8% Fibonacci ratio of its March-April upside amid a nearly oversold RSI. Given the receding bearish strength of the MACD signals and the quote’s rebound from the key Fibonacci ratio, as well as the RSI (14) line’s recovery from the oversold territory, the latest run-up in price is likely to prevail for a bit. The same highlights the 38.2% Fibonacci retracement level of 155.00 for short-term buyers. However, a convergence of the 50-SMA, a two-month-old previous support line, and a downward-sloping resistance line from April 29, around 155.60-70, appears a tough nut to crack for the bulls. Following that, the pair’s gradual rise toward the monthly high of nearly 158.00 and then to the recent multi-year peak surrounding 160.00 can’t be ruled out. Meanwhile, the 200-SMA and 50% Fibonacci ratio put a short-term floor under the USDJPY pair at around 153.30. In a case where the sellers keep control past the 153.30 support confluence, the Yen pair bears could again jostle with the 61.8% Fibonacci ratio surrounding 151.70, also known as the Golden Fibonacci ratio. It’s worth noting, however, that the quote’s weakness past 151.70 will make it vulnerable to revisit the lows marked in March near 146.50. During the fall, the 150.00 threshold and the 78.6% Fibonacci ratio around 149.40 can act as intermediate halts. USDJPY is likely to extend the latest corrective bounce, especially amid the Japanese holiday, but the upside room appears limited.
by MTradingGlobal
USDJPY reverses pullback from 34-year high on mixed Japan dataA mixed bag of Japan statistics triggered the USDJPY pair’s fresh run-up early Tuesday. In doing so, the Yen pair justifies mostly downbeat employment and activity data from the Asian major while reversing the previous day’s retreat from the highest level since 1990. Also favoring the upside bias are the bullish MACD signals and the quote’s U-turn from a seven-week-old rising support line, close to 154.70 by the press time. With this, the risk-barometer pair is likely approaching the 160.00 threshold. However, the overbought RSI conditions could challenge the buyers around the recent multi-year peak of 160.20. Even if the pair remains firmer past 160.20, the year 1990’s high of 160.40 and an upward-sloping resistance line stretched from late June 2023, around 161.60 at the latest, can prod the bulls. On the contrary, USDJPY sellers need validation from the aforementioned support line from early March surrounding 154.70, as well as FOMC and the US NFP, to retake control even for a short term. Following that, an 18-month-old previous resistance line near 151.75 and the bottom line of a 10-month-long rising wedge bearish chart pattern, around 150.80, will be in the spotlight. In a case where the Yen pair remains bearish past 150.80, the 150.00 psychological magnet and the 200-SMA level of 148.20 will act as the final defense of the buyers. Overall, the USDJPY pair remains bullish but the upside room appears limited as traders await this week’s key data/events, namely the monetary policy announcements from the Federal Open Market Committee (FOMC) and the monthly US employment report.
by MTradingGlobal
USDJPY refreshes 34-year high on BoJ’s dovish haltUSDJPY prints a three-day winning streak while rising to a fresh high since 1990 as it justifies the Bank of Japan’s (BoJ) dovish halt. That said, the BoJ kept its benchmark rates unchanged, as expected, but omitted the mention of bond buying operations which were anticipated to suggest the Japanese central bank’s hawkish turn. With this, the Yen pair pokes an upward-sloping resistance line stretched from early December, around 155.90 at the latest. Given the overbought RSI conditions and the recently easing bullish bias of the MACD, the quote is likely to witness a pullback, which in turn highlights the 155.00 threshold and the mid-month peak surrounding 154.80. However, the bottom line of a six-week-old rising wedge bearish chart formation, close to 154.20 as we write, will be the key to watch for the seller’s entry. In a case where the pair remains weak past 154.20, a six-month-old horizontal support line near 151.70 will precede an area comprising multiple levels marked since early February, around 150.90-80, to challenge the pair bears. Above all, the USDJPY pair buyers should remain hopeful unless witnessing a daily closing beneath an ascending trend line from late December 2023, near 150.30 at the latest. On the contrary, a successful upside break of the aforementioned multi-month-old resistance line surrounding 155.90 will need validation from the top line of a short-term rising wedge bearish chart formation, near 156.10. Should the USDJPY pair buyers ignore overbought RSI and keep the reins past 156.10, the odds of witnessing a gradual run-up toward the 160.00 psychological magnet and then to the year 1990 peak of 160.40 can’t be ruled out. Overall, the USDJPY pair remains bullish beyond 150.30 but a short-term pullback appears overdue.
by MTradingGlobal
USDJPY hovers around multi-year high as bulls run out of steamUSDJPY edges higher past 154.00 while making rounds to the 34-year top marked the previous day, mildly bid within a four-month-old rising trend channel early Tuesday. In doing so, Yen pair buyers take a breather at the multi-year high as the overbought RSI (14) line joins sluggish market conditions. It’s worth noting, however, that the bullish MACD signals and the quote’s sustained trading beyond a 6.5-month-old ascending resistance line, now support around 151.85, keep the bulls in the driver's seat. That said, the 61.8% Fibonacci Extension (FE) of the pair’s December-March moves and the 21-day Exponential Moving Average (EMA), respectively near 153.05 and 152.00, restrict the quote’s immediate downside. Following that, a two-month-old horizontal support zone near 150.90-80 and the aforementioned bullish channel’s support line, close to 149.60 at the latest, will act as the final defense of the pair buyers, a successful break of which could give control to the bears. Meanwhile, the 78.6% FE level surrounding 154.85 guards the immediate upside of the USDJPY pair ahead of the multi-month-old rising trend channel’s top line, near 155.20 as we write. It’s worth mentioning that the Yen pair’s sustained run-up beyond 155.20 will need validation from the June 1990 peak of 155.80 to keep the bulls in control. Following that, the pair’s gradual advances toward the 100% FE level of 157.15 can’t be ruled out. That said, the 156.00 and the 157.00 round figures will act as intermediate halts during the rise. Overall, the USDJPY pair buyers appear exhausted, suggesting a pullback in the prices, but the broadly bullish trend is likely to remain intact unless the quote breaks the 149.60 key support.
by MTradingGlobal
USDJPY bulls eye multi-day-old resistance line and US InflationUSDJPY picks up bids within a fortnight-old trading range while defending the previous day’s rebound from a 150.80-90 support confluence, comprising the 21-day Exponential Moving Average (EMA) and multiple levels marked in the last two months. The Yen pair’s recovery also justifies the upbeat RSI (14) line and inspires buyers to poke an upward-sloping resistance line stretched from late October 2023, close to 152.00 by the press time. However, the impending bear cross on the MACD challenges the quote’s further upside. In a case where the pair remains firmer past 152.00, the 61.8% Fibonacci Extension (FE) of its moves between December 2023 and March 2024, near 153.10, will be on the bull’s radar ahead of the 78.6% FE level surrounding 154.85. Meanwhile, the USDJPY pair’s daily closing beneath the 150.80 support confluence will need validation from the 38.2% FE level of 150.55 and the 150.00 threshold. Following that, January’s peak surrounding 148.80 and the previous monthly low near 146.50 could lure the Yen pair sellers. It’s worth noting that February’s bottom of 145.90 acts as the final defense of the pair buyers, a break of which will make the quote vulnerable to drop toward the 140.00 psychological magnet. Overall, the USDJPY is likely to remain firmer but the buyers appear running out of steam and hence this week’s US inflation data, namely the Consumer Price Index (CPI) for March, will be crucial to watch for clear directions.
by MTradingGlobal
USDJPY grinds within immediate range amid holiday-shortened weekUSDJPY registered the first weekly loss in three amid mixed concerns about the Bank of Japan’s (BoJ) next move, especially when the policymakers hesitated to stick to the hawkish plan after the first rate hike in 17 years. However, the broad US Dollar strength and an upbeat performance of the yields put a floor under the prices. Apart from the mixed fundamentals, the Yen pair’s inability to break the seven-week-old horizontal support zone surrounding 150.75-90, as well as cross an upward-sloping resistance line stretched from March 20, close to the 152.00 threshold, restrict short-term moves of the pair. It’s worth noting, however, that the quote’s sustained trading beyond the 100 and 200 SMA join steady oscillators to keep the buyers hopeful. That said, an upside clearance of the 152.00 immediate resistance could quickly propel the prices toward a three-week-old support-turned-resistance, around 152.90. Following that, the June 1990 high of 155.80 will be in the spotlight. On the contrary, a downside break of the seven-week-old horizontal support of 150.75-90 will direct the USDJPY sellers toward the 200 and 100 SMA levels, respectively near 150.00 and 149.75 at the latest. In a case where the Yen pair sellers keep the reins past 149.75, the March 18 swing high of 149.30 and the 149.00 round figure will act as the final defense of the buyers before directing the sellers toward the previous monthly high of near 146.50. Overall, the mixed catalysts join the Easter Monday holiday in major markets and a light calendar to restrict the USDJPY pair’s moves. However, the quote remains on the bull’s radar.
by MTradingGlobal
USDJPY eases from key resistance, focus on US, Japan inflationUSDJPY remains pressured towards 151.00 while keeping the previous day’s U-turn from a five-month-old horizontal resistance zone amid Monday’s sluggish Asian session. In doing so, the Yen pair justifies the RSI (14) line’s divergence with the latest high in prices. However, the bullish MACD signals and the quote’s successful trading above the resistance-turned-support line stretched from mid-November 2023, close to 150.30 by the press time, challenge the pair sellers. Even if the quote drops below 150.30, the 150.00 psychological magnet and January’s high of 148.80 will test the bears before directing them toward the 200-SMA support of 146.70. On the contrary, the USDJPY pair buyers need to provide a daily closing beyond the multiple tops marked since October 2023 near the 151.90-70 region to retake control. Even so, the year 2022 peak of around 151.95 and the 152.00 threshold will challenge the Yen pair buyers before directing prices toward the tops marked in 1990 around 155.80 and 160.40. In doing so, the quote will also need to jostle with the 160.00 round figure. Apart from the multiple hurdles toward the north, the US Core PCE Price Index and Japan’s Tokyo CPI also act as the key challenges for the pair buyers to tackle to keep the reins. Overall, the USDJPY buyers need strong catalysts to defend the latest run-up.
by MTradingGlobal
USDJPY jumps 100 pips even as BoJ exits negative-rate policyUSDJPY refreshes a two-week high during a six-day uptrend even as the Bank of Japan (BoJ) takes a historical decision to end the Negative Interest Rate Policy (NIRP), as well as the Yield Curve Control (YCC). It’s worth noting, however, that such a move was widely anticipated and hence, a “sell the fact” reaction appeared on the chart. However, a three-week-old falling resistance line surrounding the 150.00 psychological magnet and the overbought RSI (14) conditions seem to challenge the Yen pair buyers. Even if the quote manages to cross the 150.00 hurdle, a slightly downward-sloping trend line from mid-February, near 150.80 at the latest, quickly followed by the 151.00 round figure, will challenge the bulls afterward. Meanwhile, the USDJPY pair’s pullback appears widely expected and hence the short-term sellers can aim for the 149.20-15 support confluence comprising the 100 and 200 SMAs. However, a one-week-old rising support line surrounding 148.85 could test the Yen pair sellers afterward. In a case where the bears keep the reins past 148.85, the February 07 swing low of around 147.60 and the current monthly bottom of 146.48 will be in the spotlight. Overall, the USDJPY pair’s immediate reaction to the BoJ’s decision appears less logical and is likely to be reversed. However, Wednesday’s Federal Reserve (Fed) monetary policy decision will be the key in determining the same.
by MTradingGlobal
USDJPY probes four-day losing streak despite upbeat Japan GDPUSDJPY seesaws at the lowest level in five weeks as bulls and bears jostle after the biggest weekly loss in eight months. In doing so, the Yen pair fails to justify better-than-previous Japanese GDP while challenging the four-day losing streak. That said, the oversold RSI (14) conditions and the 200-SMA support of near 146.30-25 also challenge the quote’s further downside. Following that, the mid-2023 peak of around 145.00 could act as an intermediate halt before directing the bears toward the late 2023 bottom of 140.25. Meanwhile, the USDJPY pair’s rebound needs validation from the 100-SMA level of 147.60, as well as the support-turned-resistance line stretched from early January, close to 148.80 at the latest. However, the 150.00 threshold and multiple tops surrounding 151.00 could check the Yen pair buyers afterward. Also acting as the upside filter is the previous yearly high of 151.90 and a one-year-old previous support line, now resistance around 152.80. Overall, the USDJPY pair’s sustained trading beneath the key technical supports, now resistances, join the bearish MACD signals to keep sellers hopeful. However, the oversold RSI and nearness to the 200-SMA might challenge the quote’s short-term downside.
by MTradingGlobal
USDJPY bulls struggle but bears need validation from 149.00USDJPY reverses the first weekly loss in five while printing mild gains around 150.50 early Tuesday. In doing so, the Yen pair seesaws near a three-week-old horizontal resistance surrounding 150.90-151.00. It’s worth noting that the lackluster RSI and sluggish MACD signals suggest further grinding of the quote below the stated key resistance. The bearish momentum, however, appears less likely until the prices stay beyond a convergence of the 200-SMA and a two-month-long rising support line, close to 149.00. Apart from the 149.00 support confluence, January’s high of near 148.80 will also try to challenge the Yen pair sellers before giving them control. Meanwhile, an upside break of the 150.90-151.00 resistance region will allow the USDJPY buyers to aim for the double tops marked during late 2022 and 2023 near 152.00. It should be observed that the Yen pair’s run-up beyond the 152.00 hurdle highlights the 160.00 psychological magnet and the year 1990 peak of around 160.40 for the bulls. In that case, the overbought RSI line and likely adjustments in the Bank of Japan’s (BoJ) monetary policy will challenge the pair’s further upside. Overall, the USDJPY pair’s upside momentum runs out of steam but the bearish move is yet to gain acceptance and hence needs validation from the key support of near 149.00, as well as the US/Japan fundamental catalysts scheduled for publishing during this week.
by MTradingGlobal
USDJPY bulls lack momentum as US, Japan inflation clues loomUSDJPY rose in the last four consecutive weeks even if the US Dollar Index (DXY) snapped a five-week uptrend, amid an increase in the near-term US Treasury bond yields and chatters about a delay in the Bank of Japan’s (BoJ) delay in ending the ultra lose monetary policy. It’s worth noting, however, that the technical signals are against the Yen pair buyers as the nearly overbought RSI (14) line joins the bearish MACD conditions. Also challenging the upside momentum is the quote’s retreat from a week-old horizontal resistance around 150.80. Even if the pair crosses the immediate upside hurdle, he previous yearly high of 151.90 and an ascending resistance line from late December 2023, forming part of a rising wedge bearish chart formation near 153.80, will be tough nuts to crack for the bulls. On the contrary, the USDJPY pair’s pullback remains elusive unless the price stays above the lower line of a 10-week-old rising wedge bearish chart formation’s bottom line, close to 149.80 at the latest. Following that, a quick fall to January’s top surrounding 148.80 can’t be ruled out. However, the 100-bar and 200-bar Exponential Moving Averages (EMAs) will test the Yen pair bears near 147.10 and 145.00 respectively before directing the quote toward the theoretical target of the rising wedge confirmation, namely around 139.40. It should be It should be observed that the 140.00 threshold and the mid-2023 swing low of near 137.25 act as additional downside filters to watch. Overall, the USDJPY pair lacks upside momentum but the bears need confirmation from the short-term rising wedge chart formation before taking control. Also important are the initial inflation clues from Japan and the US.
by MTradingGlobal
USDJPY recovers within two-month-old rising wedgeUSDJPY snaps a two-day losing streak early Friday while challenging the previous day’s rising wedge bearish chart pattern’s confirmation. In doing so, the Yen pair justifies an upbeat RSI (14) line, as well as an impending bull cross on the MACD. It’s worth noting, however, that a clear upside break of 150.50 support-turned-resistance becomes necessary to defy the downside signals. Following that, an ascending trend line from January 31, also forming part of a short-term rising wedge near 151.70, will lure the bulls. It’s worth noting that the upper line of a broader rising wedge, close to 152.40 at the latest, appears the last defense of the pair sellers before directing the quote toward the June 1990 swing high of around 155.80. Meanwhile, the USDJPY pair’s failure to cross the 150.50 immediate upside hurdle will drag it back below the 150.00 threshold. In that case, a convergence of the 100-SMA and the aforementioned wedge’s bottom line surrounding 148.40 will be a crucial level to watch for the pair sellers as a clear break of that will open doors for a theoretical fall toward 137.90. During the fall, the 200-SMA level of 147.00, monthly low of near 145.90 and December’s trough surrounding 140.25 will act as intermediate halts. Overall, USDJPY remains on the bear’s radar despite the latest recovery move.
by MTradingGlobal
USDJPY portrays bullish consolidation, further downside expectedOn Tuesday, the USDJPY pair snapped a two-day winning streak while reversing from a 13-day-old horizontal resistance surrounding 148.80-90. The pullback move also justifies the upbeat RSI and bearish MACD signals. With this, the Yen pair is likely to decline further toward the 50-bar Exponential Moving Average (EMA) level of nearly 146.60. However, the 100-EMA of 146.20 and the monthly low of 145.90 will challenge the sellers afterward, suggesting another U-turn in the price. In doing so, the quote manages a fortnight-long trading range that consolidates the pair’s gains marked since late December. Meanwhile, USDJPY buyers remain off the table unless they witness a daily closing beyond the aforementioned horizontal resistance of around 148.80-90. Even so, the late November 2023 swing high of around 149.80 and the 150.00 threshold will test the Yen pair’s upside moves. In a case where the bulls keep the reins past 150.00, the odds of witnessing the quote’s run-up toward the previous yearly high of around 151.90 can’t be ignored. Overall, USDJPY remains in the bullish consolidation mode and hence likely witnessing further downside. However, the yields and the US Dollar moves are telling a different story and may test the sellers, which in turn requires caution on the part of the pair traders.
by MTradingGlobal
USDJPY lures bears as FOMC, NFP week beginsUSDJPY makes rounds to 148.00 early Monday as the key week comprising the Federal Reserve (Fed) monetary policy meeting and the US employment report begins. That said, the Yen pain snapped a three-week uptrend in the last while fading the bounce within a three-week-old triangle. While the hawkish hopes from the Fed and likely firmer prints of the US job numbers seem to tease the US Dollar bulls, hopes of the Bank of Japan’s (BoJ) exit from ultra-easy policy and positioning for the US data/events lure sellers. It’s worth noting, however, that the 50-bar Exponential Moving Average (EMA) and the aforementioned triangle’s bottom line, respectively near 147.50 and 147.35, could test the bears before welcoming them. Even so, the 200-EMA level of around 146.10, quickly followed by the 146.00 round figure, will act as the final defense of the buyers. Meanwhile, a one-week-old descending resistance line surrounding 148.50 guards immediate recovery of the USDJPY pair. Following that, the previously stated triangle’s top line, near 149.30 by the press time, will be important to watch for the quote’s further upside. In a case where the Yen pair buyers keep the reins past 149.30, the 150.00 threshold and November’s peak of around 151.90 are likely to gain the market’s attention. Overall, the USDJPY pair buyers lack momentum as the top-tier US data/events loom.
by MTradingGlobal
USDJPY fades bounce off 100-SMA on BoJ status quoUSDJPY refreshed its intraday high to 148.55, before retreating to 148.00, as the Bank of Japan (BoJ) matches market expectations of keeping the monetary policy unchanged. In doing so, the Yen pair struggles to keep the late Monday’s recovery from the 100-SMA amid the inactive hours of Tuesday’s trading. It’s worth noting that the hawkish expectations from BoJ Governor Kazuo Ueda’s speech and the US Dollar’s consolidation join the nearly overbought RSI conditions to challenge the pair buyers. However, a convergence of the 100-SMA and bottom line of a one-month-old bullish trend channel, around 147.55-45, appears a tough nut to crack for the bears. Should the quote drop below 147.45, it becomes vulnerable to test 38.2% Fibonacci retracement of the pair’s July-November upside, near 146.40, ahead of revisiting the mid-December peak of around 145.00. Meanwhile, the USDJPY pair’s recovery needs to surpass Friday’s peak of around 148.80 to activate fresh buying. Following that, the 150.00 round figure and the top line of the aforementioned bullish channel, close to 150.50 at the latest, will test the Yen pair buyers. In a case where the quote remains firmer past 150.50, the previous yearly high marked in November at around 151.90 will be in the spotlight. To sum up, the BoJ inaction failed to keep the Yen pair buyers on the board as policymakers in Japan appear fed up with the ultra-easy monetary policy.
by MTradingGlobal
USDJPY extends pullback from key EMA confluence below 144.00USDJPY drops half a percent to 143.55 during the early hours of Tuesday’s Asian session. In doing so, the Yen pair extends Friday’s retreats from a convergence of the 100-bar Exponential Moving Average (EMA) and the 50-EMA. Adding strength to the downside pressure is the Doji candlestick on the top and the absence of an oversold RSI (14) line, not to forget the sluggish MACD. With this, the sellers appear set to approach the 61.8% Fibonacci retracement of July-November upside, near 142.90. Following that, the previous monthly low and the 78.6% Fibonacci ratio around 140.40 and the 140.00 threshold will challenge the bears before directing them to the mid-2023 bottom surrounding 137.35. On the flip side, the aforementioned EMA convergence stops the USDJPY buyers’ entry near 145.50-60. Also acting as a short-term upside filter is the stated Doji candlestick’s peak of around 146.00. In a case where the Yen pair manages to stay firmer past 146.00, the 23.6% Fibonacci ratio of near 148.40 will act as the final defense of the sellers, a break of which won’t hesitate to direct buyers toward the previous yearly peak of 151.90. Overall, the USDJPY pair is likely to extend the latest downside, at least until Wednesday’s US inflation data comes out.
by MTradingGlobal
USDJPY defends falling wedge breakout above 143.00USDJPY remains dicey around 143.30 as traders await the key US employment clues early Thursday, after rising in the last two consecutive days. In doing so, the Yen pair floats above the 100-SMA while keeping the early week’s confirmation of a bullish chart formation, namely the falling wedge. It’s worth noting that the overbought RSI and cautious mood ahead of the key US data could have stopped the pair buyers. However, the falling wedge confirmation and bullish MACD signals join the 100-SMA breakout to suggest the quote’s further advances toward the mid-December swing high of around 145.00. Following that, the 200-SMA hurdle surrounding the 145.50 will be the last defense of the pair bears before giving to the bull, who in turn could aim for November’s bottom of nearly 146.70. Meanwhile, intraday selling can be witnessed on a downside break of the 100-SMA, close to the 143.00 threshold. In that case, the aforementioned wedge’s top line, around 141.20, will gain the USDJPY seller’s attention. Following that, the recent bottom of 140.25, the 140.00 psychological magnet and the wedge’s bottom line near 139.90 will act as the final stops for the bears before allowing them to aim for the late July swing low of around 138.00. Overall, the USDJPY pair is likely to reverse the late 2023 fall but the recovery needs validation from the US data and the 200-SMA.
by MTradingGlobal
USDJPY stays pressured toward 141.00 on last trading day of 2023USDJPY fades the previous day’s corrective bounce off a five-month low amid sluggish markets on the final trading day of 2023. In doing so, the Yen pair extends the mid-week pullback from 200-SMA even as the oversold RSI (14) and the sluggish MACD signals challenge bears. Also putting a floor under the risk-barometer pair is a 50% Fibonacci retracement of the March-November upside, as well as May’s peak, surrounding 140.80. It’s worth noting, however, that the quote’s sustained trading below 140.80 makes it vulnerable to drop toward a broad horizontal support zone comprising levels marked since early March, between 137.90-70. Meanwhile, a corrective bounce could aim for the 200-SMA level of 143.00 whereas a seven-week-old descending trend line, close to 143.40 at the latest, will test the USDJPY buyers afterwards. Should the Yen pair manage to defend the recovery moves past 143.40, June’s peak of around 145.10 will be on the bull’s radar. Following that, a gradual run-up toward 148.00 and the 150.00 psychological magnet can’t be ruled out. Overall, the USDJPY pair appears bearish even if a corrective bounce appears imminent.
by MTradingGlobal
USDJPY bulls prod 200-EMA resistance after BoJ status quoUSDJPY prints a three-day uptrend while extending the previous week’s recovery from the lowest level since late July after the Bank of Japan (BoJ) defends the current monetary policy. In doing so, the Japanese central bank rules out concerns surrounding its gradual exit from the ultra-easy monetary policy amid a recent increase in inflation. With this, the Yen pair pokes the 200-EMA hurdle, extending recovery from a five-month-old horizontal support. The rebound also justifies the RSI (14) line’s U-turn from the oversold territory, which in turn suggests the quote’s further run-up beyond the key EMA surrounding 143.80. However, the bearish MACD signals and a downward-sloping resistance line from mid-November, close to 145.30 by the press time, will challenge further advances. In a case where the buyers keep reins past 145.30, the odds of witnessing a run-up towards the monthly high near 148.35 and then toward the 150.00 psychological magnet can’t be ruled out. Meanwhile, growing chatters about the US Federal Reserve’s (Fed) rate cuts in early 2024 could join the downbeat yields to weigh on the USDJPY pair, which in turn highlights the aforementioned horizontal support region of around 141.50-142.00. Should the Yen pair sellers manage to break the 141.50 support, it can quickly drop to the 140.00 psychological magnet before highlighting July’s low of 137.23 as the key support. Following that, the pair’s bearish trajectory towards the yearly bottom of 127.20 appears a favorite for the bears. Overall, USDJPY regains upside momentum but the room towards the north appears limited.
by MTradingGlobal
200-SMA prods USDJPY’s bounce off 4.5-month lowUSDJPY prints mild gains around 142.00 to snap a three-day losing streak at the lowest level since late July. In doing so, the Yen pair portrays a corrective bounce amid oversold RSI (14) conditions. However, the bearish MACD signals and the 200-SMA hurdle, at 142.50 by the press time, challenge the quote’s recovery. Even if the pair manages to cross the 142.50 hurdle, a 5.5-month-long horizontal resistance line and a falling trend line from mid-November will test the buyers around 144.00 and 145.85 in that order. It’s worth noting that the previous support line stretched from March 24, surrounding 147.60, acts as the final defense of the Yen pair sellers. Meanwhile, the 50% Fibonacci retracement of the March-November upside, near 140.85, acts as an immediate downside support for the USDJPY pair. Following that, the 140.00 round figure will precede the 61.8% Fibonacci ratio of around 138.20 to prod the Yen pair sellers. In a case where the quote remains bearish past 138.20, July’s bottom of 137.23 appears the final battleground for the bulls before surrendering their weapons to the sellers. Overall, the USDJPY pair is likely to remain bearish even if the road toward the south appears long and bumpy.
by MTradingGlobal
USDJPY sellers attack 147.00 to justify corrective pullbackUSDJPY struggles to defend the three-week losing streak as the bottom line of a bullish trend channel, stretched from late March, joins the 100-day Exponential Moving Average (EMA) to restrict the quote’s immediate downside near the 147.00 threshold. Even if the quote breaks the 147.00 support, a convergence of the five-month-old previous resistance and the 200-day EMA, around 143.80 by the press time, will be a tough nut to crack for the bears. Following that, the Yen pair’s fall toward the August monthly low near 141.50 and then to the 140.00 round figure, can’t be ruled out. On the contrary, the receding bearish power of the MACD and the nearly oversold RSI (14) line join the 147.00 support to challenge the USDJPY bears. That said, the pair’s recovery, however, needs validation from the 50-EMA level of around 148.60. Should the quote manage to remain firmer, the 150.00 psychological magnet will precede the previous monthly high of 151.90 to act as the final test for the pair buyers. It’s worth noting that the Yen pair’s successful trading above 151.90 enables the bulls to aim for the top-line of the previously-stated channel’s top line, surrounding 154.00. Overall, the USDJPY pair portrays bearish consolidation and may witness a bounce in prices unless the quote stays beyond the 147.00 key support.
by MTradingGlobal
USDJPY drops to three-week low on breaking 150.00 key supportUSDJPY prints a three-day losing streak as it slides to the lowest level in three weeks amid early Monday. In doing so, the Yen pair justifies the previous day’s downside break of the 150.00 support confluence comprising the 200-SMA and a 2.5-month-old bullish channel’s lower line. Adding strength to the downside bias are bearish MACD signals. However, the oversold RSI (14) line appears to challenge the south-run of late. With this, the 50% and 61.8% Fibonacci retracements of September-November upside, near 148.20 and 147.30 respectively, act as strong challenges for the sellers. Following that, the quote becomes vulnerable to plunge towards the 78.6% Fibonacci ratio of 145.90 and then to September’s low of 144.43. On the flip side, the USDJPY pair’s recovery needs validation from the 150.00 support-turned-resistance confluence. In a case where the Yen buyers manage to keep the reins past 150.00, the last swing high surrounding 151.45 and the monthly peak of 151.90, as well as the previous yearly top of near 151.95, will test the bulls before allowing them to prod the 152.00 psychological magnet. It should, however, be noted that the pair’s successful trading above 152.00 will enable it to challenge the June 1990 top surrounding 155.80. To sum up, USDJPY is likely to witness further downside but the fall appears slow beyond 147.30.
by MTradingGlobal