USD/JPY Price Analysis: Fades upside momentum near 11-week top

USD/JPY bounces off intraday low, snaps four-day uptrend.
Easing RSI favor further consolidation of gains but 100-day SMA offers strong support.

Anil Panchal FXStreet

Despite the recent bounce off 104.85 to 104.90, USD/JPY prints 0.07% intraday losses, the first negative in five days, during Tuesday’s Asian trading. In doing so, the quote steps back from the highest since mid-November amid easing RSI from nearly overbought conditions.

Considering the RSI situations and the market’s latest risk-off mood, USD/JPY is likely to extend the latest pullback towards the 104.40 support confluence including 100-day SMA and the early January high.

Read: S&P 500 Futures part ways from Wall Street’s optimism as Gamestop, US stimulus gridlock probe bulls

However, an ascending trend line from January 06, at 103.86 now, will offer a tough nut to crack for USD/JPY sellers.

Meanwhile, buyers are likely to take fresh positions only if the quote crosses the latest high of 105.03.

Following that 38.2% Fibonacci retracement of June 2020 to January 2021 downside, around 105.35 and 200-day SMA near 105.60 will be the key to watch.

Overall, USD/JPY remains strong but RSI conditions favor retracement.

USD/JPY daily chart

Trend: Pullback expected

USD/JPY

Overview
Today last price	104.86
Today Daily Change	-0.10
Today Daily Change %	-0.10
Today daily open	104.96

Trends
Daily SMA20	103.84
Daily SMA50	103.83
Daily SMA100	104.4
Daily SMA200	105.61

Levels
Previous Daily High	105.04
Previous Daily Low	104.61
Previous Weekly High	104.94
Previous Weekly Low	103.56
Previous Monthly High	104.94
Previous Monthly Low	102.59
Daily Fibonacci 38.2%	104.87
Daily Fibonacci 61.8%	104.77
Daily Pivot Point S1	104.7
Daily Pivot Point S2	104.44
Daily Pivot Point S3	104.27
Daily Pivot Point R1	105.12
Daily Pivot Point R2	105.29
Daily Pivot Point R3	105.55

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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