- USD/JPY recovers on weak Canadian jobs data and rising US Treasury yields.
- Bullish candlestick chart pattern forms a basis for upside potential.
- Technical indicators suggest a buying momentum as USD/JPY challenges the 140.00 resistance level.
He USD/JPY rebounded from weekly lows and the confluence of the 20-day EMA on Friday after Canadian jobs data triggered a jump in US Treasury yields. /JPY is trading at 139.37, up 0.32% on the day.
USD/JPY Price Analysis: Technical Perspective
After reaching year-to-date highs of 140.91 in late May, USD/JPY fell towards 138.40 as threats of possible intervention by the Japanese authorities led to four straight days of declines. In the midst of those plays, ever-lowering US Treasury yields added another reason for the recession. Since then, a bullish engulfing candlestick pattern has formed, creating a base around the 138.40 area, which was tested on Thursday, but sellers failed to break below the 20-day EMA at 138. .69, keeping support intact as buyers prepare for an assault towards 140.00.
Another factor supporting the USD/JPY move higher is the RSI, which is in bullish territory, while the 3-Day Rate of Change (RoC) suggests that buyers are gathering momentum as the RoC is close to neutral levels.
Therefore, the first resistance for USD/JPY would be 140.00. A break of the latter would expose the weekly high at 140.45, before challenging the year’s high at 140.91. On the other hand, a drop below 139.00 could open the door to test the bottom of the aforementioned range around 138.40.
USD/JPY Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
