- 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|
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.