Technical Analysis – USDJPY directs lower but positive tone endures

USDJPY is gaining some traction off the mid-Bollinger band at 108.87, near a supportive trend line drawn from the 102.58 low. The fresh deflection in the price off the upper Bollinger band may have recently curbed additional developments past the 110.00 border; however, sellers seem to currently lack the necessary backing to shift sentiment to the downside.

Although the short-term oscillators are slightly favouring price advances, they are presently transmitting conflicting signals in directional momentum. The MACD is holding a tad above zero and its red trigger line, while the upward pointing RSI appears set to improve its bounce off the 50 level. The negatively charged stochastic oscillator is reflecting price’s pullback and has yet to indicate a rise in positive impetus for the pair.

If the pair successfully forms a strong foothold off the mid-Bollinger band at 108.87 and oversteps the 50-day simple moving average (SMA) at 109.12, tough upside constraints may originate from the 109.69-109.95 section, which also contains the upper Bollinger band. Navigating beyond the 110.00 handle could then propel the price towards a durable area of resistance between the 110.74 barrier and the 1-year high of 110.96. Triumphing over this too could encourage buyers to challenge the 111.71 peak, reached in March 2020.

Otherwise, if price fails to adhere to the ascending trend line around 108.70, early support could arise from the 108.33 neighbouring low. Diving from here, the lower Bollinger band around 107.89 and the 107.47 border beneath may attempt to dismiss a deeper decline from evolving. Should sellers then continue to lead the pair below the vital trough of 107.47, downside limitations could concur around the 100-day SMA at 107.17 and the adjoining 106.94-107.04 support boundary.

Summarizing, USDJPY is maintaining a bullish tone above the diagonal support. Moreover, bearish tendencies would need to break below the 107.47 trough to significantly gain an upper hand.



Latest News

Technical Analysis – GBPJPY sellers struggle to amplify price pullback   

Technical Analysis – Boeing’s stock nears key support ahead of Q3 earnings

Technical Analysis – NZDUSD gains at risk as sellers push back

Technical Analysis – USDJPY takes a breather before rallying again

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.