USDJPY Technical Analysis | Forexlive
On the daily chart below for
USDJPY, we can see that the price rallied towards the 135 handle resistance and got rejected. The sellers
leant on that major psychological
round number and pushed the price lower as the US data started
to deteriorate.
The price has now broken below
the 133.70 support and the sellers are eyeing a return to the 130 handle. The
red long-period moving
average will act as support for the buyers though, so we are likely to see some
consolidation before the next fundamental catalyst moves the market.
On the 4 hour chart below, we can
see that yesterday we got continuing selling as the risk off sentiment sent the
JPY higher. The likely culprit should be the issues with the FRC bank which
reported a huge drop in deposits the prior day and ignited again fears around
the banking sector.
The FRC bank stock fell almost
50% since the earnings report. On the USD/JPY chart we can also notice that the
whole move towards the 135 handle was diverging with the MACD, and the price has now even
broken below the trendline. This should be a signal that
the price has further downside ahead.
On the 1 hour chart below, we can
see that at the moment we have some consolidation just below the 133.77 support
and the red long period moving average. The sellers are likely to lean on this
support zone to target a break below the swing low, defined by the black line,
and then print new lower lows.
The buyers, on the other hand,
will want the price to break above the trendline to gain enough conviction to
target the 135 resistance again. Tomorrow, the US Jobless Claims should be a market moving event
and it’s likely that we will see further downside in case the data misses
expectations but a correction higher in case the data beats.