USD/JPY Price Analysis: Bears flirt with confluence support near 108.70

USD/JPY trades sideways in the early Asian session.
Pair remains in indecision, needs confirmation to move directionally.
Momentum oscillator tilt in favor of downside momentum.

Rekha Chauhan Independent Analyst

The USD/JPY pair remains reclusive to gain any meaningful momentum on Wednesday.The pair extended the previous day's sluggish move while confiding in a narrow trade band.

At the time of writing, the USD/JPY pair is trading at 108.77, up 0.01% on the day.

USD/JPY daily chart

On the daily chart, the pair has been consolidating for the past four sessions. The formation of Doji candlesticks near the 108.70 mark suggests indecision in the market.

The Moving Average Convergence Divergence (MACD) indicator reads below the midline with a bearish crossover. This hints at the underlying bearish sentiment for the pair. If the MACD extends its decline, then price would be mirroring its action.

In doing so, the first area of support for the bears would emerge near the lows of May 11 at 108.30 followed by the 108.12 horizontal support level.

Bears would next target for the April 26 low at 107.64.

Alternatively, a sustained move beyond the previous day’s closing at 108.80 could push the pair onto a higher trajectory with the first target in place coming at the 50-day Simple Moving Average (SMA) at 109.10.

If price is able to hold onto the 50-day SMA, then it could further target at May 20 high at 109.30. The next on the bulls radar’s would be the 109.65 horizontal resistance level.

USD/JPY Additional Levels

USD/JPY

Overview
Today last price	108.81
Today Daily Change	0.05
Today Daily Change %	0.05
Today daily open	108.76

Trends
Daily SMA20	109.03
Daily SMA50	109.11
Daily SMA100	107.24
Daily SMA200	106.04

Levels
Previous Daily High	109
Previous Daily Low	108.7
Previous Weekly High	109.5
Previous Weekly Low	108.57
Previous Monthly High	110.85
Previous Monthly Low	107.48
Daily Fibonacci 38.2%	108.81
Daily Fibonacci 61.8%	108.88
Daily Pivot Point S1	108.64
Daily Pivot Point S2	108.52
Daily Pivot Point S3	108.34
Daily Pivot Point R1	108.94
Daily Pivot Point R2	109.12
Daily Pivot Point R3	109.24

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.