USD/JPY Forecast: Holding near its weekly highs

Valeria Bednarik FXStreet

USD/JPY Current price: 104.17

View Live Chart for the USD/JPY

Holding near its weekly highs. The USD/JPY pair regained the 104.00 level, rallying up to 104.41 during the European morning, but surprisingly, it came under pressure following the release of US positive data, as stocks pared gains. The short term picture shows that the price is well above a bullish 100 SMA, currently around 103.80, the immediate support, whilst technical indicators are pulling back from overbought territory, indicating that the downward move may extend further, particularly if Wall Street turns negative after the opening. In the 4 hours chart, technical indicators have also turned south from near overbought readings, but the 100 and 200 SMAs keep advancing below the current level, now converging in the 102.30 region. The 100 DMA holds around 102.60, and despite short term retracements, the longer term outlook will be bullish as long as the price holds above it.

Support levels: 103.80 103.35 103.00

Resistance levels: 104.40 104.70 105.05

Interested in USD/JPY technicals? Check out the key levels

1. R3 105.77
2. R2 105.21
3. R1 104.45
PP 103.89
1. S1 103.14
2. S2 102.58
3. S3 101.82

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro defends 1.1500 level ahead of US data

EUR/USD struggles to make a decisive move in either direction and trades in a tight channel above 1.1500 on Tuesday. Investors cling to a cautious stance amid the uncertainty surrounding the situation in the Middle East and help the USD stay resilient against its rivals, limiting the pair's upside ahead of the next batch of US data.

Ripple Price Forecast: XRP extends technical weakness despite whales increasing exposure

Ripple (XRP) declines for a second day in a row, trading around $1.07 at the time of writing on Tuesday. The remittance token has continued to sustain a bearish outlook, aligning with the broader cryptocurrency market.

Volatility waits for fresh catalyst ahead of US-Iran 'talks'

EU mid-market update: SpaceX and AMD to report after the close; Volatility waits for fresh catalyst ahead of US-Iran 'talks'. - Middle East and energy drives sentiment still.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.