Home USD/JPY technical analysis: Bounces off 2-month old support-line
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USD/JPY technical analysis: Bounces off 2-month old support-line

  • USD/JPY takes recovers from near-term key support-line.
  • Bearish MACD, sustained trading below 50-bar EMA, multi-day old resistance-line keep buyers away.

Despite taking the U-turn from a two-month-old descending trend-line, USD/JPY is still far from being strong as it takes the rounds to 105.30 ahead of the European session on Monday.

On the fundamental side, latest trade accord between the US and Japan triggered the pair’s upswing while uncertainty surrounding the automobiles and lack of clarity on the deal keeps the pair under pressure.

12-bar moving average convergence and divergence (MACD) keeps its bearish signal intact, which in turn highlights the importance of 104.57 support-line figure for sellers.

Given the bears keep dominating below 104.57, late-2016 lows surrounding 102.50 could become their favorites.

Meanwhile, 106.16/20 confluence including 50-bar exponential moving average (EMA) and a six-day long horizontal-line can keep buyers away, which if broken could escalate the recovery towards a downward sloping resistance-line since August 01, at 106.60.

USD/JPY 4-hour chart

Trend: Pullback expected

 

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