USD/JPY Price Analysis: Recovers from 61.8% Fibonacci retracement amid risk on mood


  • 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.

While portraying the same, the S&P 500 Futures refresh record high above 3,500 whereas stocks in Asia-Pacific are led by over 1.9% gains of Japan’s Nikkei 225.

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

Overview
Today last price 105.58
Today Daily Change 0.21
Today Daily Change % 0.20%
Today daily open 105.37
 
Trends
Daily SMA20 106.05
Daily SMA50 106.52
Daily SMA100 106.99
Daily SMA200 107.99
 
Levels
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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.19 after robust US Nonfarm Payrolls data

EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.

EUR/USD News

GBP/USD recovers after post-NFP dip below 1.38

GBP/USD is trading above 1.38 bus till down the day. The US gained 379.000 jobs, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.

GBP/USD News

XAU/USD battles 1700 level

Gold is staging a rebound toward $1,700 amid proift-taking ahead of the weekend but remains on track to close the third straight week in the negative territory.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures