USD/JPY climbs after BoJ bond move – Can it break 145.00?
-
USDJPY finds resistance at 23.6% Fibonacci.
-
Next crucial barrier around 145.00.
-
Stochastics move up.
USDJPY had an interesting rebound off the 142.00 support level as Japanese officials decided to intervene in the bond market, sending the pair up to the 23.6% Fibonacci retracement level of the down leg from 158.86 to 139.85 at 144.35.
From a technical standpoint, the RSI is holding near the neutral threshold of 50, while the stochastics are rising toward the 80 level.
If the market successfully overcomes the 20-day simple moving average (SMA) at 144.80, which found strong resistance earlier today, the price will need to fight with the 50-day SMA at 145.40. Higher, the 38.2% Fibonacci at 147.17 and the descending trend line could act as a turning point for the broader outlook.
Alternatively, a fall beneath the 142.00 psychological mark would increase downside speculation, reaching the seven-month low of 139.85 ahead of the 200-weekly SMA at 138.70, changing the bias to strongly bearish.
All in all, USDJPY has been in a negative structure since January and only a decisive rally above the 200-day SMA and the 50.0% Fibonacci may shift the picture to bullish in the short-term.
Author
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.
