- USD/JPY oscillated in a wide range, although still unable to stay in the green, shedding 0.15%.
- The daily chart keeps the buyers in control, although USD/JPY could pull back before testing year’s highs.
- In the short term, USD/JPY has a neutral-bearish bias, and once it breaks above the 200 EMA, it could drop below 144.00.
The USD/JPY it stalled at the 20-day EMA around 146.90 and fell towards its daily low of 145.10 before regaining some ground. However, USD/JPY continued to trade lower at 146.12, down 0.14% amid a volatile session.
USD/JPY Price Analysis: Technical Outlook
USD/JPY continues to have a neutral-upward bias, as the daily chart shows, although the effect of Bank of Japan (BoJ) interventions has taken its toll on the trading floor. Also, falling US Treasury yields are a dollar headwind; therefore, USD/JPY is expected to continue to decline.
From a technical point of view, USD/JPY is facing strong resistance at 146.90 and is struggling to extend losses below the 26 Oct daily close at 146.37, which, if confirmed, would open the door for further losses. . Key USD/JPY support levels lie at the Oct 27 low at 145.10, followed by the 50-day EMA at 143.64, before 140.00.
In the short term, the USD/JPY four-hour chart suggests that the pair has a neutral bias to the downside, unable to break the 200 EMA at 145.61 on its first attempt in the Asian session. It is worth noting that USD/JPY fell to a fresh three-week low, so if USD/JPY failed to break above the latest high around 148.41, a retest of the 200 EMA is on the cards.
Therefore, the first support for USD/JPY would be the S1 daily pivot at 145.56, followed by the 200 EMA at 145.61. Once this area is broken, the next support would be the S2 daily pivot point at 144.80, followed by 144.00, before the S3 pivot level at 143.37.
Key USD/JPY Technical Levels
Source: Fx Street
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