USD/JPY Price Analysis: Treads water inside 40-pip trading range near 149.00
- USD/JPY remains indecisive after a volatile start to the week.
- Immediate resistance line joins previous support from late September to restrict nearby moves.
- Sustained trading above the key SMAs, the receding bearish bias of MACD keeps buyers hopeful.
USD/JPY holds onto the day-start inaction around 149.00 as European traders brace for Tuesday’s work. In doing so, the yen pair remains inside a 40-pip trading area established after a rollercoaster start to the week.
That said, the support-turned-resistance line from September 22, around 149.00 by the press time, restricts the yen pair’s immediate downside. Alternatively, a descending trend line joining the quote’s retreat from early Monday’s peak, near 148.60, acts as the adjacent resistance.
It’s worth noting that the USD/JPY remains well above the key moving averages and has been getting less bearish signals from the MACD of late, which in turn suggests the quote’s run-up towards the 150.00 threshold.
Following that, the recently flashed 32-year high near 152.00 and June 1990 peak surrounding 155.80 will be in focus.
Alternatively, a downside break of 148.60 could drag the USD/JPY prices toward the 100-SMA and 200-SMA, respectively near 147.00 and 145.30.
If the quote drops below 145.30, the 61.8% Fibonacci retracement level of the pair’s run-up between September 22 and October 21, close to 144.80, could act as the last defense of the bulls.
Overall, USD/JPY remains on the buyer’s radar but the short-term moves appear less impressive.
USD/JPY: Four-hour chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
