USD/JPY climbs after BoJ bond move – Can it break 145.00?
|-
USDJPY finds resistance at 23.6% Fibonacci.
-
Next crucial barrier around 145.00.
-
Stochastics move up.
USDJPY had an interesting rebound off the 142.00 support level as Japanese officials decided to intervene in the bond market, sending the pair up to the 23.6% Fibonacci retracement level of the down leg from 158.86 to 139.85 at 144.35.
From a technical standpoint, the RSI is holding near the neutral threshold of 50, while the stochastics are rising toward the 80 level.
If the market successfully overcomes the 20-day simple moving average (SMA) at 144.80, which found strong resistance earlier today, the price will need to fight with the 50-day SMA at 145.40. Higher, the 38.2% Fibonacci at 147.17 and the descending trend line could act as a turning point for the broader outlook.
Alternatively, a fall beneath the 142.00 psychological mark would increase downside speculation, reaching the seven-month low of 139.85 ahead of the 200-weekly SMA at 138.70, changing the bias to strongly bearish.
All in all, USDJPY has been in a negative structure since January and only a decisive rally above the 200-day SMA and the 50.0% Fibonacci may shift the picture to bullish in the short-term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.