USD/JPY Price Analysis: Intraday uptick falters near 50-hour SMA, ahead of 109.70 resistance


  • USD/JPY seemed struggling to capitalize on the attempted intraday positive move.
  • The set-up warrants some caution before placing any aggressive directional bets.

The USD/JPY pair failed to capitalize on the early uptick to levels beyond the 109.50 region and met with some fresh supply near 50-hour SMA. Given the occurrence of a death cross on the 1-hourly chart, wherein 50-hour SMA has been drifting away from 200-hour SMA, the technical set-up might have already shifted in favour of bearish traders.

This coupled with the fact that the pair on Thursday broke below an important horizontal resistance breakpoint-turned-support, around the 109.70 region, further add credence to the near-term negative outlook. The mentioned area coincides with 23.6% Fibonacci retracement level of the 107.65-110.29 positive move and should act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts maintained their bearish bias and have been losing positive traction on the daily chart. However, oscillators on the daily chart are yet to gain any meaningful negative momentum and thus, warrant some caution before placing any aggressive bets or positioning for any further near-term corrective slide.

Hence, it will be prudent to wait for some strong follow-through selling below the overnight swing lows, around the 109.25 region. The mentioned area marks 50-day SMA, which if broken now seems to set the stage for a slide towards testing sub-109.00 levels (50% Fibo.).

On the flip side, bulls are likely to wait for a sustained move back above the key 110.00 psychological mark. Above the mentioned handle, the might surpass the recent swing highs, around the 110.30 region, and aim towards reclaiming the 111.00 round-figure mark. The momentum could further get extended towards a multi-month-old ascending trend-line resistance, currently near the 111.30 region.

USD/JPY 1-hourly chart

fxsoriginal

USD/JPY

Overview
Today last price 109.54
Today Daily Change 0.05
Today Daily Change % 0.05
Today daily open 109.49
 
Trends
Daily SMA20 109.34
Daily SMA50 109.17
Daily SMA100 108.67
Daily SMA200 108.52
 
Levels
Previous Daily High 109.9
Previous Daily Low 109.26
Previous Weekly High 110.3
Previous Weekly Low 109.46
Previous Monthly High 109.8
Previous Monthly Low 108.43
Daily Fibonacci 38.2% 109.51
Daily Fibonacci 61.8% 109.66
Daily Pivot Point S1 109.21
Daily Pivot Point S2 108.92
Daily Pivot Point S3 108.57
Daily Pivot Point R1 109.84
Daily Pivot Point R2 110.19
Daily Pivot Point R3 110.47

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trades above 34-month lows after US retail sales miss

EUR/USD is trading around 1.0850, above the lowest since April 2017. The US Control Group disappointed by staying flat in January. Consumer sentiment beat expectations. Germany reported a 0% growth in Q4 2019. 

EUR/USD News

GBP/USD ticks down after reshuffle-related rally

GBP/USD is trading closer to 1.30, consolidating its gains after UK PM Johnson nominated Sunak as Chancellor instead of Javid, potentially directing fiscal stimulus. Brexit concerns and coronavirus developments are in play.

GBP/USD News

US retail sales modestly higher in January, soft in the details

Consumers kept to their habits boosting purchases last month but the holiday season was slower than its initial reading giving the New Year a soft beginning.

Read more

WTI climbs to fresh two-week highs above $52

The barrel of West Texas Intermediate (WTI) fell below the $51 handle on Thursday but recovered a large portion of its losses to close the day at $51.50 on easing concerns over the impact of the coronavirus outbreak on the global energy demand. 

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures