USD/JPY outlook: Recovery attacks key barriers, bear-trap underpins the action
|USD/JPY
USDJPY regained traction on Wednesday, after spiking to the lowest in nearly one month on Tuesday.
Strong downside rejection formed a bear trap pattern (under daily cloud base), as well as Hammer candle (Tuesday), adding to developing positive signals.
Strong resistances at 147.60 zone (daily cloud top / converged 10/20 DMA’s) are under pressure, with sustained break here to strengthen near-term structure for fresh recovery towards targets at 148.05/46 (Fibo) and key barrier at 148.70 (200DMA).
Bullish near-term bias expected while the price holds above 55DMA (147.18), but caution is required as daily studies are bearishly aligned (daily RSI below 50 / 14-d momentum in negative territory).
Thursday’s release of US August inflation report will be in focus for the final signals ahead of FOMC policy meeting next week.
Res: 147.72; 148.05 148.46; 148.70.
Sup: 147.39; 147.18;146.70; 146.30.
Interested in USD/JPY technicals? Check out the key levels
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.