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USD/JPY Price Analysis: Bears Constrain Bulls Awaiting Key Events

  • USD/JPY bulls try to break higher ahead of key events.
  • The bears are committing to critical resistance so far.

The pair USD/JPY is trying to break a medium-term downtrend with a bullish outlook for next week as key events on the US calendar loom. Yen traders had been wrong with the Bank of Japan’s surprise monetary policy tightening last month, and the recent maintenance of monetary policy has left the pair with an uptrend to test the resistance of the Daily Trend Line, as the following technical analysis will illustrate:

USD/JPY daily chart

The bulls have been advancing since late last week, and we are on the brink of a breakout. However, there is still a lot of work for the bulls to do as we approach key events on the calendar as the following analysis on the 4-hour chart shows:

USD/JPY H4 Chart

Price action is building a bullish case, but resistance is key. Right now, there is a lack of commitment from the bulls at the trend line resistance and the evidence is weak. The failures open up risks for a reversal as we approach the US calendar events on Thursday.

Source: Fx Street

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