USD/JPY Price Analysis: Challenges 50-DMA on its three-day uptrend

USD/JPY takes out post-FOMC minutes highs to challenge 50-DMA at 110.19.
Fed minutes signalled tapering is coming before the end of this year.
RSI has pierced through the midline, the tide has turned in favor of bulls.

Dhwani Mehta FXStreet

USD/JPY is challenging four-day highs above 110.00, having taking out the post-FOMC top at 110.07, as the bulls continue to take advantage of the unabated US dollar demand across the board.

The Fed minutes revealed that the officials discussed tapering plans for the latter part of this year when they met in July for the monetary policy review. The greenback bulls were just awaiting this confirmation for advancing further, which drove USD/JPY higher alongside.

However, the bulls could face some stiff resistance on its three-day uptrend, as the Treasury yields are bearing the brunt of the risk-off trading in the global markets, thanks to the covid woes and tapering fears.

Technically, USD/JPY needs to crack the 50-Daily Moving Average (DMA) at 110.19 on a sustained basis to unleashing the recovery towards the August 13 highs of 110.46.

Further up, the buyers will target the August 11 highs of 110.80.

The daily Relative Strength Index (RSI) has pierced through the midline, reclaiming the bullish territory, which suggests that the tide has turned in favor of the optimists.

USD/JPY daily chart

On the flip side, horizontal 21-DMA offers immediate support at 109.89, below which the daily low at 109.77 will get tested.

The last resort for USD/JPY buyers is envisioned at the 100-DMA cap at 109.66.

USD/JPY additional levels to watch

USD/JPY

Overview
Today last price	110.17
Today Daily Change	0.41
Today Daily Change %	0.37
Today daily open	109.77

Trends
Daily SMA20	109.88
Daily SMA50	110.18
Daily SMA100	109.67
Daily SMA200	107.48

Levels
Previous Daily High	110.07
Previous Daily Low	109.48
Previous Weekly High	110.8
Previous Weekly Low	109.55
Previous Monthly High	111.66
Previous Monthly Low	109.06
Daily Fibonacci 38.2%	109.84
Daily Fibonacci 61.8%	109.7
Daily Pivot Point S1	109.48
Daily Pivot Point S2	109.18
Daily Pivot Point S3	108.89
Daily Pivot Point R1	110.07
Daily Pivot Point R2	110.36
Daily Pivot Point R3	110.65

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.

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