USD/JPY technical analysis: Oscillates in a familiar trading range, FOMC eyed for fresh directional impetus


  • The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Wednesday.
  • The pair remains well within a broader trading range held over the past one week or so, awaiting s fresh impetus from the FOMC monetary policy update.

Meanwhile, neutral technical indicators on hourly charts have been supportive of a firm intraday directional move, albeit bearish oscillators on the daily chart point to an extension of the recent bearish trajectory and additional weakness. 

However, given that the pair has repeatedly shown resilience below the 108.00 round figure mark, bearish traders are likely to wait for a strong follow-through selling below the mentioned handle before positioning for any further depreciating move.

On the upside, a short-term descending trend-line – extending from yearly tops set on April 24, is likely to act as an immediate strong resistance, which if cleared might negate the bearish set-up and prompt some aggressive short-covering move.

Above the mentioned barrier, the pair is likely to accelerate the recovery towards reclaiming the 109.00 handle before eventually darting to its next major hurdle near the 109.60 supply zone.

USD/JPY daily chart

USD/JPY

Overview
Today last price 108.4
Today Daily Change -0.04
Today Daily Change % -0.04
Today daily open 108.44
 
Trends
Daily SMA20 108.81
Daily SMA50 110.14
Daily SMA100 110.48
Daily SMA200 111.21
Levels
Previous Daily High 108.68
Previous Daily Low 108.06
Previous Weekly High 108.8
Previous Weekly Low 108.16
Previous Monthly High 111.71
Previous Monthly Low 108.23
Daily Fibonacci 38.2% 108.3
Daily Fibonacci 61.8% 108.44
Daily Pivot Point S1 108.11
Daily Pivot Point S2 107.77
Daily Pivot Point S3 107.49
Daily Pivot Point R1 108.73
Daily Pivot Point R2 109.02
Daily Pivot Point R3 109.35

 

 

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