USDJPY Technical Analysis | Forexlive
On the daily chart below for the
USDJPY, we can see that after the huge rally caused by the once again dovish
BoJ, the price found resistance near the last high at 137.90 and
then sold off as the US
Job Openings missed expectations. The price then bounced a
little from the resistance turned support at the 135.09 level, but then broke
through as the Fed hinted at a pause if the
disinflationary trend continues as expected.
The price is now at the red long
period moving
average and it’s likely that will see some support here. This big selloff from
the 138 handle may also turn into a big double
top pattern
which would have the 122 handle as the ultimate target.
On the 4 hour chart below, we can
see that there’s lots of support around the 134 handle with the trendline, the previous resistance turned
support and the daily red long period moving average. The price is also a bit
overstretched as we can see by the distance from the blue short period moving
average. When this happens, we can generally see some consolidation or pullback
before the next move.
On the 1 hour chart below, we can
see that the moving averages are acting as resistance for the price and we also
have a downward trendline defining the bearish momentum. The sellers are likely
to lean on those in case the price pulls back while the buyers will want to see
a break above the trendline supported by a fundamental catalyst before piling
in and extending the move to the upside. Today, we have the US Jobless Claims report and it’s likely that we
will see a deeper pullback in case of a big beat and a break below the 133.70
support in case of a big miss.