- USD / JPY is trading near the 200-month SMA that has supported the price many times.
- A breakout would shift the risk in favor of a dip to deeper support levels.
USD / JPY is trading around the 104.00 region during the European session on Friday. The bears failed to settle below the 200-month Simple Moving Average (SMA) at 103.92 earlier this month.
The bears have failed several times in the past four years to force a monthly close below the long-term moving average.
So the 200-month SMA is the level to defend for the bulls. If the pair finishes below this moving average on Monday, more substantial selling pressure may emerge, potentially leading to a deeper drop towards 101.18 (March low).
On the other hand, a close above the resistance at 104.76 (November 24 high) would confirm a short-term bullish turn and would open the doors at 105.68 (November 11 high).
USD / JPY monthly chart
USD / JPY technical levels
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