- USD/JPY picks up bids following its latest U-turn from 105.29.
- A monthly resistance line, previous support, joined bearish MACD to question the bulls.
- 61.8% Fibonacci retracement of July-August upside restricts immediate declines.
USD/JPY rises to 105.61, up 0.25% on a day, during the pre-European session trading on Monday. The yen pair recently picked bids as market sentiment turned positive amid coronavirus (COVID-19) vaccine hopes. Also, receding uncertainty surrounding Japan’s leadership after PM Shinzo Abe further propels the risk-on mood.
As a result, the quote extends its Friday’s bounce off the key Fibonacci retracement support to challenge the previous support line, at 105.67 now.
However, bearish MACD and multiple failures to cross the same support-turned-into-resistance question the optimists.
Even if the pair manages to cross 105.67 resistance, a confluence of 100 and 200-bar SMA level near 106.10 acts as the key upside filter.
Alternatively, a downside break of 105.27, comprising 61.8% Fibonacci retracement, needs validation from the monthly low of 105.10 to target 104.80 and late-July low near 104.20.
USD/JPY four-hour chart
Trend: Pullback expected
Additional important levels
|Today last price||105.58|
|Today Daily Change||0.21|
|Today Daily Change %||0.20%|
|Today daily open||105.37|
|Previous Daily High||106.95|
|Previous Daily Low||105.2|
|Previous Weekly High||106.95|
|Previous Weekly Low||105.2|
|Previous Monthly High||108.16|
|Previous Monthly Low||104.19|
|Daily Fibonacci 38.2%||105.87|
|Daily Fibonacci 61.8%||106.28|
|Daily Pivot Point S1||104.73|
|Daily Pivot Point S2||104.1|
|Daily Pivot Point S3||102.99|
|Daily Pivot Point R1||106.48|
|Daily Pivot Point R2||107.58|
|Daily Pivot Point R3||108.22|
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