USD/JPY Price Analysis: Bulls remain hopeful while above critical 21-DMA

USD/JPY jumps back on the bids in tandem with the US Treasury yields.
21-DMA is the level to beat for the bears, as risk-off mood lifts the USD.
RSI inches higher above the midline, more upside remains likely?

Dhwani Mehta FXStreet

USD/JPY is trading above 114.00, looking to recover from Friday’s sell-off to weekly lows of 113.58, as the US Treasury yields rebound across the curve ahead of this week’s Fed minutes.

Expectations that the Fed could offer hints on the timing of a rate hike fuel a renewed upside in the yields, in turn, benefiting the US dollar. The greenback also takes advantage of the prevalent risk-off market profile, courtesy of the concerns about European COVID-19 curbs.

Meanwhile, investors digest the latest comments from Japan on a potential oil reserves release. The broader market sentiment is expected to lead the way going forward.

USD/JPY’s daily chart shows that the price has managed to recapture the critical horizontal 21-Daily Moving Average (DMA) at 113.89.

On Friday, the major briefly dipped below the aforementioned but managed to mark a daily close above it, keeping the buyers hopeful.

Meanwhile, the Relative Strength Index (RSI) is inching higher above the midline, suggesting that the recent uptick could likely extend in the session ahead.

USD/JPY: Daily chart

A daily closing below the 21-DMA could trigger a fresh downswing towards Friday’s low, below which a run south towards the 113.00 cannot be ruled out.

Further down, an upward-sloping 50-DMA at 112.66 will then challenge the bullish commitment.

USD/JPY: Additional levels to consider

USD/JPY

Overview
Today last price	114.18
Today Daily Change	0.19
Today Daily Change %	0.17
Today daily open	113.99

Trends
Daily SMA20	113.88
Daily SMA50	112.57
Daily SMA100	111.27
Daily SMA200	110.11

Levels
Previous Daily High	114.54
Previous Daily Low	113.59
Previous Weekly High	114.97
Previous Weekly Low	113.59
Previous Monthly High	114.7
Previous Monthly Low	110.82
Daily Fibonacci 38.2%	113.95
Daily Fibonacci 61.8%	114.18
Daily Pivot Point S1	113.54
Daily Pivot Point S2	113.09
Daily Pivot Point S3	112.59
Daily Pivot Point R1	114.49
Daily Pivot Point R2	114.99
Daily Pivot Point R3	115.45

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.