USD/JPY Price Analysis: Gearing up for a move towards 106.25-30 supply zone


  • USD/JPY was seen consolidating its recent gains to three-week tops, above mid-105.00s.
  • The set-up favours bullish traders and supports prospects for further appreciating move.
  • Only a sustained break below the 105.00 round-figure will negate the constructive outlook.

The USD/JPY pair now seems to have entered a bullish consolidation phase and was seen oscillating in a range around the 105.60 region, just below three-week tops set earlier this Tuesday. Given that the overnight dip was bought into near the 105.40-35 confluence support, the bias seems tilted firmly in favour of bullish traders and supports prospects for additional gains.

The constructive outlook is further reinforced by the fact that oscillators on hourly charts have been gaining traction and have also recovered from the negative territory on the daily chart. Hence, some follow-through positive move beyond the 106.00 round-figure mark, towards testing the next major hurdle near the 106.25-30 supply zone, now looks a distinct possibility.

The mentioned barrier is followed by 100-day SMA, around the 106.60-65 region, which if cleared will set the stage for an extension of the recent recovery from the 104.00 mark.

On the flip side, the 105.40 area might continue to act as immediate strong support, below which the USD/JPY pair might turn vulnerable to slide back to the key 105.00 psychological mark. The latter coincides with 200-hour SMA and should act as a strong near-term base for the major. A convincing breakthrough will now be seen as a fresh trigger for bearish traders.

USD/JPY 1-hourly chart

fxsoriginal

Technical levels to watch

USD/JPY

Overview
Today last price 105.63
Today Daily Change 0.12
Today Daily Change % 0.11
Today daily open 105.51
 
Trends
Daily SMA20 105.61
Daily SMA50 105.84
Daily SMA100 106.66
Daily SMA200 107.62
 
Levels
Previous Daily High 105.69
Previous Daily Low 105.26
Previous Weekly High 105.7
Previous Weekly Low 104
Previous Monthly High 107.05
Previous Monthly Low 105.1
Daily Fibonacci 38.2% 105.43
Daily Fibonacci 61.8% 105.53
Daily Pivot Point S1 105.29
Daily Pivot Point S2 105.06
Daily Pivot Point S3 104.86
Daily Pivot Point R1 105.71
Daily Pivot Point R2 105.92
Daily Pivot Point R3 106.14

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

The Federal Reserve lowered its rates by 50 bps - LIVE

The Federal Reserve lowered its rates by 50 bps - LIVE

The Federal Reserve reduced its Fed Fund Target Range (FFTR) by 50 bps to 4.75%-5.00% amidst a divided consensus at its gathering on Wednesday.

FOLLOW US LIVE
EUR/USD climbs to daily highs near 1.1180 following the Fed’s decision

EUR/USD climbs to daily highs near 1.1180 following the Fed’s decision

EUR/USD now picks up extra pace and revisits the 1.1180 region after the Federal Reserve decided to cut its interest rates by 50 bps at its event on Wednesday.

EUR/USD News
GBP/USD hits fresh tops near 1.3300 on weaker Dollar

GBP/USD hits fresh tops near 1.3300 on weaker Dollar

The Greenback is now accelerating its decline following the Fed’s decision to reduce its interest rates, sending GBP/USD to fresh tops in the 1.3290 zone.

GBP/USD News
Gold clinches a record high near $2,600 ahead of Powell

Gold clinches a record high near $2,600 ahead of Powell

Prices of Gold gather extra steam and hit an all-time top near the $2,600 mark per ounce troy as investors continue to assess the 50 bps rate cut by the Federal Reseve and warm up for the usual press conference by Chief Jerome Powell.

Gold News
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut

Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut

The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures