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

 

 

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