USD/JPY Price Analysis: Pares intraday gains, up little around 113.30-35 area

  • USD/JPY struggled to capitalize on its modest intraday uptick amid renewed USD selling bias.
  • The risk-on impulse undermined the safe-haven JPY and might help limit any further losses.
  • Slight overbought RSI could trigger some long-unwinding trade and deeper corrective slide.

The USD/JPY pair erased a major part of its intraday gains to the 113.60 region and was last seen hovering just a few pips above daily lows, around the 113.30-35 region. 

The US dollar came under some renewed selling pressure during the early part of the European session and extended the previous day's retracement slide from 13-month tops. This, in turn, was seen as a key factor that acted as a headwind for the USD/JPY pair, though the risk-on impulse undermined the safe-haven Japanese yen and helped limit any deeper losses.

Looking at the technical picture, the recent strong positive momentum from the vicinity of the 109.00 level stalled near a resistance marked by the top boundary of an upward sloping channel. RSI on the daily chart is still holding in the overbought territory, which might trigger some long-unwinding trade and set the stage for a deeper pullback for the USD/JPY pair.

That said, the lack of any meaningful slide warrants some caution before confirming that the USD/JPY pair has topped out in the near term and positioning for any further depreciating move. From current levels, the 113.00 round-figure mark seems to act as immediate strong support, which if broken decisively should prompt aggressive technical selling.

The USD/JPY pair might then accelerate the downfall towards testing the next relevant support near the 112.25-20 horizontal zone. Any subsequent decline might still be seen as a buying opportunity and remain limited near the 112.00 round figure.

On the flip side, the 113.55-60 region now seems to have emerged as an immediate strong resistance, above which the USD/JPY pair could challenge the trend-channel barrier just ahead of the 114.00 mark. Some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for an extension of a multi-week-old bullish trend.

USD/JPY 4-hour chart


Technical levels to watch


Today last price 113.33
Today Daily Change 0.08
Today Daily Change % 0.07
Today daily open 113.25
Daily SMA20 111.18
Daily SMA50 110.42
Daily SMA100 110.26
Daily SMA200 108.81
Previous Daily High 113.8
Previous Daily Low 113.23
Previous Weekly High 112.25
Previous Weekly Low 110.82
Previous Monthly High 112.08
Previous Monthly Low 109.11
Daily Fibonacci 38.2% 113.45
Daily Fibonacci 61.8% 113.58
Daily Pivot Point S1 113.05
Daily Pivot Point S2 112.85
Daily Pivot Point S3 112.48
Daily Pivot Point R1 113.63
Daily Pivot Point R2 114
Daily Pivot Point R3 114.2



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