- USDJPY snaps three days of losses tests the bottom of one-month-old upslope trendline.
- Sentiment remains downbeat as uncertainty around US midterm elections persists.
- USDJPY Price Analysis: Buyers reclaiming 146.70 will keep the upward bias intact; otherwise, a fall to the 100-day EMA is on the cards.
The USDJPY trims some of its Tuesday losses and bounces off the 50-day Exponential Moving Average (EMA) as buyers are trying to reclaim the 146.00 figure following three days of consecutive losses. Factors like the US midterm elections are likely to end with split control between Republicans and the Democrats in the US Congress, keeping risk appetite dented. At the time of writing, the USDJPY is trading at 146.10, above its opening price by 0.25%.
USDJPY Price Analysis: Technical outlook
After diving below a one-month-old upslope support trendline, the USDJPY is nearby to getting back above it, suggesting that buyers are gathering momentum. Of note, the Relative Strength Index (RSI) is in bearish territory but with an upslope, implying that the USDJPY would continue upwards once cleared.
In the near term, the USDJPY hourly chart appears to form a base around the 145.00 figure, and on its way towards reclaiming 146.00, buyers cleared the daily pivot point at 145.97 and tested the 146.63 R1 daily pivots. Nevertheless, USD buyers lacked the strength to clear the latter, and USDJPY prices retreated towards 146.20s.
The USDJPY key resistance levels lie at the R1 daily pivot at 146.63, which, once cleared would open the door for a test 100-hour EMA at 146.78, ahead of the psychological 147.00 mark. On the flip side, the USDJPY first support would be 146.00. A breach of the latter will expose the daily pivot point at 145.97, followed by the daily low at 145.17.
USDJPY Key Technical Levels
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