USD/JPY Price Analysis: Awaits acceptance above 50-DMA to unleash additional upside


  • USD/JPY battles 50-DMA after Tuesday’s solid rebound.
  • 100-DMA saved the day for the USD/JPY bulls.
  • DXY rebound could lead to acceptance above 50-DMA but RSI remains bearish.

USD/JPY is consolidating the recent recovery, having almost tested the 110.00 level earlier in the Asian trades.

The spot finds support from the renewed buying interest seen around the US dollar, as markets turn risk aversion once again amid looming Delta covid variant concerns.

As observed on the daily sticks, the rebound in the spot appears capped by the horizontal 50-Daily Moving Average (DMA) at 109.96.

A daily closing above the latter is needed to confirm a bullish reversal from two-month troughs of 109.06 reached earlier this week.

The next upside target aligns at the July 16 high of 110.34, above which buying opportunities could open up towards the slightly bearish 21-DMA at 110.46.

USD/JPY daily chart

However, the 14-day Relative Strength Index (RSI), hovering below the midline, warrants caution for the bulls.

Therefore, a failure to find acceptance above the 50-DMA barrier could recall the sellers, exposing the ascending 100-DMA support at 109.49 on another occasion.  

The 109.00 round number will then challenge the downside. Further south, the bulls could seek some reprieve at the horizontal trendline support at 108.61.

USD/JPY additional levels to watch

USD/JPY

Overview
Today last price 109.87
Today Daily Change 0.02
Today Daily Change % 0.02
Today daily open 109.84
 
Trends
Daily SMA20 110.48
Daily SMA50 109.95
Daily SMA100 109.46
Daily SMA200 106.95
 
Levels
Previous Daily High 109.96
Previous Daily Low 109.33
Previous Weekly High 110.7
Previous Weekly Low 109.71
Previous Monthly High 111.12
Previous Monthly Low 109.19
Daily Fibonacci 38.2% 109.72
Daily Fibonacci 61.8% 109.57
Daily Pivot Point S1 109.46
Daily Pivot Point S2 109.08
Daily Pivot Point S3 108.84
Daily Pivot Point R1 110.09
Daily Pivot Point R2 110.34
Daily Pivot Point R3 110.72

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: The dollar is not out of the woods yet

The EUR/USD pair retreated on Friday from a multi-week high of 1.1908, ending the week with substantial gains around 1.1870. June US Core PCE inflation came in at 3.5% YoY, below expectations. EUR/USD is mildly bullish in the near-term, but faces critical resistance at 1.1920.

EUR/USD News

GBP/USD: The fundamental background backs another leg higher

The GBP/USD pair settled at 1.3900, its best weekly close since early May. The pair eased on Friday as month-end flows helped the greenback to recover some of the ground lost post-Fed’s dovish statement. Cable could fall once below 1.3865, buyers could surge on approaches to 1.3800.

GBP/USD News

Gold bulls hesitate as focus shift to NFP

After closing the previous week in the negative territory, gold stayed on the back foot on Monday and dropped below $1,800. However, the subdued market action ahead of key macroeconomic events allowed the precious metal to stay in a consolidation phase on Tuesday.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

Challenging week ahead

Three macro considerations are shaping the investment climate: the evolution of the virus and the response, the timeframe of the Fed's tapering, and China's broad regulatory crackdown. Beijing's new policy initiatives are broader and quicker than generally anticipated.

Read more

Forex MAJORS

Cryptocurrencies

Signatures