USDJPY Price Analysis: Mildly bid between 100 and 200 SMA
- USDJPY seesaws inside a two-week-old symmetrical triangle, recently bounced off 200-SMA support.
- Oscillators suggest further grinding inside the key SMA envelope.
- Ascending trend line from early October adds to the downside filters.
USDJPY stays defensive around 147.20, mildly bid to consolidate the previous day’s losses ahead of Monday’s European session.
In doing so, the Yen pair keeps the bounce off the 200-SMA while staying inside a one-month-old symmetrical triangle.
Given the quote’s latest rebound from the key moving average, coupled with sluggish oscillators, the USDJPY prices are likely to grind higher.
However, a convergence of the 100-SMA and upper line of the stated triangle, close to 148.20 by the press time, appears a tough nut to crack for the USDJPY bulls.
Even if the quote rises past 148.20, the October 23 swing high near 149.70 precedes the 150.00 round figure to challenge the USDJPY bulls.
Following that, a run-up towards refreshing the yearly top, currently around 152.00, can’t be ruled out.
Meanwhile, a downside break of the 200-SMA, around 146.50, isn’t an open invitation to the USDJPY bears as the lower line of the aforementioned triangle, close to 146.00 will challenge the sellers.
Also acting as an additional downside filter is the ascending support line from October 05, near 145.80 by the press time.
USDJPY: Four-hour chart
Trend: Sidelined
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.
