USD/JPY Price Analysis: Bearish bias intact while below 21-DMA, US data eyed
|- USD/JPY’s uptick lacks follow-through, despite USD bounce.
- Healthy resistance levels to cap the gains in the near-term.
- Daily RSI remains bearish ahead of the US ISM data.
USD/JPY saw good two-way businesses earlier in the Asian session, now consolidating the volatile moves below 106.00, having faded a spike to near 106.45 region.
The near-term technical outlook for the pair remains bearish while the price ranges within a month-long falling channel, with the upside attempts capped by the downward-sloping 21-day Simple Moving Average (DMA) at 106.58.
The falling channel pattern could likely get confirmed only on a daily closing above the next resistance at 106.85 should the US ISM Manufacturing PMI better expectations. The next upside target lies at 107.17, the bearish 50-DMA.
Alternatively, the intraday low at 105.72 could limit the immediate downside, below which the 105.50 psychological barrier could be tested.
The daily Relative Strength Index (RSI) has turned flat below the 50 level, suggesting the sellers are likely to retain control in the coming days.
USD/JPY: Daily chart
USD/JPY: Additional 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.