USD/JPY technical analysis: Bearish bias remains, upside seems capped at 100-hour SMA
|• The USD/JPY pair failed to capitalize on the overnight bounce from the 109.00 neighbourhood and met with some fresh supply during the Asian session on Wednesday.
• The optimism over US car tariff delay turned out to be short-lived and the pair again struggled to find acceptance above 100-hour SMA amid reviving safe-haven demand.
Looking at a slightly broader picture, the pair remains well within a broader trading range held since the beginning of this week and hence, it would be prudent to wait for a convincing break before traders start positioning for the next leg of a directional move.
Given that the pair has repeatedly faced rejection at higher levels, bearish technical indicators on hourly/daily charts support prospects for an eventual break on the downside and an extension of the recent/well-established near-term bearish trend.
USD/JPY 1-hourly chart
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.