USD/JPY Price Analysis: Consolidated inside Kumo, bears eye 155.00
- USD/JPY declines to 155.60 after hitting a high of 156.44, amid cautious market sentiment.
- Mixed signals from US economic data, with JOLTS and ADP reports falling short of expectations, pressuring the pair.
- Technical outlook: First support at 50-DMA (154.98); resistance at June 4 high (156.48), followed by April 26 high (158.44) and YTD high (160.32).
The USD/JPY registered modest losses of 0.30% on Thursday, as the Greenback remains on the backfoot ahead of crucial US jobs data on Friday. Nevertheless, a soft US JOLTS report, followed by ADP Employment Change missing estimates, could be a prelude to May’s Nonfarm Payrolls report. Therefore, the major remained pressured and traded at 155.60 after hitting a high of 156.44.
USD/JPY Price Analysis: Technical outlook
From a daily chart perspective, the pair is neutral to upward biased, but buyers seem to be losing momentum. The Relative Strength Index (RSI) has been seesawing between bullish and bearish territory, yet the near-term suggests that sellers are gathering traction.
That said, the USD/JPY's first support would be the 50-day moving average (DMA) at 154.98. A breach of the latter will expose the bottom of the Ichimoku Cloud (Kumo) at around 153.40/50.
Conversely, if buyers push prices above the June 4 high of 156.48, that could sponsor a leg-up toward 157.00. On further strength, the next supply zone would be the April 26 high of 158.44, followed by the year-to-date (YTD) high of 160.32.
USD/JPY Price Action – Daily Chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
