USD/JPY technical analysis: The recent bullish run falters near 100-day SMA


  • Reviving safe-haven demand benefitted the JPY and prompted some intraday selling.
  • Bulls might now try and defend the overnight ascending trend-line resistance breakpoint.

The USD/JPY pair failed to capitalize on its early uptick to fresh multi-week tops and started retreating from 100-day SMA resistance. Currently placed near the lower end of its daily trading range, reviving safe-haven demand for the Japanese Yen seemed to be the only factor exerting downward pressure on the major.
 
The intraday pullback of around 30-pips has now dragged the pair back closer to short-term ascending trend-line resistance breakpoint, cleared decisively in the previous session.  The mentioned trend-line extends from highs touched on August 26, September 5/9 and should now act as a key pivotal point for intraday traders.
 
Meanwhile, technical indicators on the 4-hourly chart have already eased from the overbought territory and maintained their bullish bias on the daily chart, supporting the prospect for emergence of dip-buying interest. However, oscillators on the 1-hourly chart have been losing positive momentum and warrant some caution for bullish traders.
 
Failure to defend the mentioned resistance-turned-support - near the 107.70 region - will confirm a rejection near 100-day SMA and set the stage for the resumption of the recent downward trajectory. The pair then could head back towards testing the 107.00 handle before eventually falling to the 106.70 horizontal support.
 
On the flip side, sustained move beyond the 100-DMA resistance, currently near the 108.15 region, will negate any near-term bearish bias and trigger a fresh bout of the short-covering move, lifting the pair further towards reclaiming the 109.00 round figure mark amid encouraging US-China trade-related developments.

USD/JPY daily chart

fxsoriginal

USD/JPY

Overview
Today last price 107.88
Today Daily Change 0.06
Today Daily Change % 0.06
Today daily open 107.82
 
Trends
Daily SMA20 106.48
Daily SMA50 107.15
Daily SMA100 108.19
Daily SMA200 109.47
Levels
Previous Daily High 107.86
Previous Daily Low 107.5
Previous Weekly High 107.23
Previous Weekly Low 105.74
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 107.72
Daily Fibonacci 61.8% 107.64
Daily Pivot Point S1 107.59
Daily Pivot Point S2 107.36
Daily Pivot Point S3 107.22
Daily Pivot Point R1 107.96
Daily Pivot Point R2 108.09
Daily Pivot Point R3 108.32

 

 

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

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures