USD/JPY Price Analysis: Bullish bias intact while above 21-HMA in potential rising channel

  • Dollar rebound and mixed Asian equities leave USD/JPY in limbo.
  • The spot is trapped in a rising channel, risks a corrective slide.
  • Bulls to hold the reigns so long above the 21-HMA, eyes on US data.

USD/JPY holds steady around 108.90 at the moment, consolidating the renewed uptick to fresh two-month highs of 109.04.

The spot is divided between broad-based US dollar rebound and mixed sentiment on the Asian equities, as lingering US-China tensions continue to cast a dark cloud on the narrative of global economic recovery.

The focus now shifts towards Thursday’s US Jobless Claims and Friday’s Non-Farm Payrolls data for the next direction in the major.

Ahead of the US economic events, the price is likely to traverse in a potential rising channel formation, with the natural tendency suggesting increased odds of a correction after the recent surge.

The bullish bias will likely remain intact so long as the spot holds above the upward sloping 21-Hourly Simple Moving Average (HMA) support, now at 108.83. The hourly Relative Strength Index (RSI) has turned flat but still trades above the midline, suggesting the bulls still have some chance to regain the baton.

Should the 21-HMA support give way, the corrective slide will pick up pace to test the rising trendline support at 108.62.

Selling pressure will intensify below the aforesaid support, as the pattern will get confirmed. The bears will then aim for the pattern target at 107.86. However, fresh bids could emerge at 108.51, the bullish 50-HMA, before attempting a break towards sub-108 levels.

On the flip side, only a daily closing above the 109 handle will open doors for further upside.

USD/JPY: 1-hour chart

USD/JPY: Additional levels


Today last price 108.90
Today Daily Change 0.03
Today Daily Change % 0.03
Today daily open 108.9
Daily SMA20 107.53
Daily SMA50 107.63
Daily SMA100 108.32
Daily SMA200 108.39
Previous Daily High 108.98
Previous Daily Low 108.42
Previous Weekly High 107.95
Previous Weekly Low 107.08
Previous Monthly High 108.09
Previous Monthly Low 105.99
Daily Fibonacci 38.2% 108.77
Daily Fibonacci 61.8% 108.64
Daily Pivot Point S1 108.56
Daily Pivot Point S2 108.21
Daily Pivot Point S3 108
Daily Pivot Point R1 109.12
Daily Pivot Point R2 109.33
Daily Pivot Point R3 109.68



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