USD/JPY Price Analysis: 5-day SMA again caps gains
|- USD/JPY is bid, but trades below the 5-day SMA.
- The pair remains stuck in a falling channel.
The USD/JPY pair is struggling to penetrate the 5-day Simple Moving Average (SMA) hurdle for the second straight day.
The pair is currently trading near 103.55, having faced rejection at the descending 5-day SMA of 103.63 a few minutes ago.
A break above the SMA hurdle would expose the upper end of the falling channel represented by trendlines connecting Jan. 11 and Jan. 19 highs and Jan. 13 and Jan. 21 lows. The channel resistance is seen at 103.95 at press time.
A close higher would confirm a breakout and signal a continuation of the recovery rally from the Jan. 6 low of 102.59 and allow a re-test of 104.40 (Jan. 11 high).
On the downside, Thursday's low of 103.33 is the level to beat for the sellers.
Daily chart
Trend: Neutral
Technical 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.