USDJPY Analysis: Faces strong support barrier

Dukascopy Bank Team Dukascopy Bank SA

USDJPY

a test of the weekly R1 and the monthly R1 at 110.75 mid-Wednesday, the USD/JPY began a new wave down. This bearish momentum has sent the pair as low as the 100– and 200-hour SMAs this morning.

It is likely that the pair still edges lower during the following hours prior to reversing somewhere near the 109.70 area. The 200– and 100-period (4H) SMAs and a channel line are also located nearby. It seems that yesterday's fall was only a slight correction against the general up-trend.

Thus, it is expected that the prevailing three-week ascending channel continues to be respected. The daily high today should be the aforementioned 110,75 territory, while a decline should not exceed the monthly PP at 109.45.

Interested in USDJPY technicals? Check out the key levels

1. R3 111.31
2. R2 111.08
3. R1 110.71
PP 110.49
1. S1 110.12
2. S2 109.89
3. S3 109.52

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Dukascopy Bank Team

Dukascopy Bank SA

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