Japan’s industrial production rebounded in February from a large decline in the previous month and
companies forecast further gains in coming months in a sign that factory output is back on the path toward expansion. What else is discussed in this 30 March USDJPY Technical Forecast?
30 March, GKFX – The Yen picked up a bid in Asia, pushing the USD/JPY below the 4-hour 200-MA (moving average) and to a session low of 106.14.
USD/JPY eyes a quarterly drop
The pair is all set to end the first quarter down, at least 5 percent. That said, as discussed yesterday, much of the bad news has been priced-in, so the spot could regain some poise in the next quarter. However, the sell-off may resume if the S&P 500 index finds acceptance below the 200-day MA.
For now, it appears the pair has bottomed out at 104.57. Further, the hourly chart shows a bull flag – a bullish continuation pattern. A break above 106.50 (flag resistance) would signal a continuation of the rally from the March 28 low of 105.43.
30 March USDJPY Technical Forecast
FXStreet Chief Analyst Valeria Bednarik sees scope for a further upside move in the upcoming sessions.
“Technically, the 4 hours chart shows that the pair managed to hold above a bearish 200 SMA, despite briefly breaking below it, while technical indicators stalled their declines and are attempting to regain the upside, having corrected extreme overbought readings, all of which leans the scale toward the upside for the upcoming sessions.”
Support levels: 106.25 105.90 105.50
Resistance levels: 106.60 107.00 107.40
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