- USD/JPY prints mild gains despite recently easing from intraday top.
- Bullish MACD, five-week-old support portray upside momentum, 200-bar SMA adds to the downside.
- Clear break of February 16-17 highs become necessary for further upside.
USD/JPY prints a three-day uptrend while extending Monday’s bounce off a short-term support line to the weekly top of 106.13, currently around 106.00, during the early Thursday. Although MACD and sustained trading beyond 200-bar SMA offers extra strength to the bulls, highs marked during February 16-17 probe the quote’s further rise.
As a result, USD/JPY buyers should wait for a clear run-up beyond 106.22 before targeting a September high near 106.55 and an August peak surrounding 107.00.
Although the 107.00 is more likely to trigger USD/JPY pullback, any further upside won’t hesitate to eye for the latest swing difference and highlight 107.55 as the upcoming resistance.
Meanwhile, the early month peak surrounding 105.70 can entertain short-term swing traders ahead of directing them to the stated trend line support near 105.00.
It should, however, be noted that the USD/JPY bears will need the validation of extra weakness below 105.00 from 200-bar SMA level of 104.66.
Overall, USD/JPY is in an uptrend but the immediate hurdle needs a clear breakout to be sure.
USD/JPY four-hour chart
Trend: Bullish
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.
Latest Forex News
Editors’ Picks
EUR/USD drops below 1.1900 as dollar rebounds amid risk-aversion
EUR/USD is trading below 1.1900, retreating further from two-week highs of 1.1927 amid resurgent haven demand for the US dollar whilst the Treasury yields recover. Concerns about vaccines in Europe outweigh the Fed's dovish message.
GBP/USD struggles around 1.37 on dollar strength, Brexit and covid concerns
GBP/USD is trying to hold onto 1.37, trading near the March lows. The US dollar is rebounding the from dovish Fed-induced blow. Concerns about Britain's vaccine supplies and Brexit-related issues are weighing on sentiment.
XAU/USD trades as a function of yields, bounces at $1730 support
Spot gold (XAU/USD) prices have seen choppy price action this Friday, dropping from Asia Pacific levels in the upper-$1750s to lows around $1730, before recovering back to the mid-$1740s in recent trade.
Cardano’s Alonzo update might catalyze ADA price for 78% upswing
IOHK revealed Alonzo, the next protocol update for the Cardano blockchain. The upgrade will build on top of the recent releases like Mary, Allegra and so on to bring smart contract capabilities. ADA price falters but holds up as buyers eye a 78% bull run to record levels.
S&P 500: High high and away, it's the running of the bulls as PPI Freezes up
Up up and away as bulls push more record highs in equity markets. In the short term nothing, it appears, is clouding the picture. Or is it! The ten year yield reawakens with a fairly sharp rise back toward 1.7%.