USD/JPY Forecast: Hits marginally lower lows, still rangebound
|- USD/JPY prints nine-day low, but downward move lacks follow-through.
- Technical picture goes from neutral to slightly bearish.
- Next supports are seen at 107.00 and 106.80
The dollar lost ground against the yen on Wednesday, and even though USD/JPY printed a marginally lower low at 107.20, it continues to trade within its recent range, gravitating around the 107.50 level and unable to set a short-term direction. The pair tested support at the 20-day SMA – as dollar weakness was the theme of the day – but it lacked the momentum to break below it.
The short-term technical picture for USD/JPY ranges from neutral to slightly bearish as per indicators in the 4-hour chart. From a broader perspective, USD/JPY continues to trade in a rather narrow channel bounded by the 20-day SMA on the downside, currently at 107.20, and the 100-day SMA on the upside, now at 107.75. A break of either one of these levels could trigger a more substantial movement in that direction. On the downside, the next target would be at 106.80, Jun 26 low. On the upside, the next barrier stands at 108.35, where the 200-day SMA lies.
Support levels: 107.20 106.80 106.60
Resistance levels: 107.95 108.35 108.65
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