June 15, 2021, | AtoZ Markets - USDJPY is currently trading around 110.03 area and trying to push downside. After an extended period of volatility below 109.80 to 109.60 event area, the bulls found support on the uptrend line and strikes higher with an impulsive daily bullish engulfing bar last week. As per the current price action context, the price may retrace down towards 109.80 to 109.60 support level in the coming days.
USDJPY Hold Its Bullish Momentum as the Bulls Are Optimistic
USDJPY is currently residing near 110.03 area and trying to push lower. However, the price also found support at the dynamic level of 20 EMA on the daily chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY holds its bullish momentum and currently trading around 110.03 area. As per the current scenario, the price may decline towards 109.80 to 109.60 support area in the process. So, if the price declines towards 109.80 to 109.60 support level and bounced higher with an impulsive 4-hour bullish candle close, the bulls may sustain the bullish pressure towards 110.20 to 110.30 resistance area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside in the days ahead. Along with this, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish crossover. It indicates that the price may retrace downside at least towards the dynamic level in the process.
USDJPY Bulls Are Still Optimistic
According to the daily chart, USDJPY holds its bullish bias and currently trading around 110.03 area. As per the current price action context, the price may retrace downward at least 50% of the daily bullish candle of yesterday. So, if the price retraces towards 109.80 to 109.60 area and bounced upside with a daily bullish candle, the bulls may continue the bullish trend towards 110.20 to 110.30 area as a first target. The second target will be 110.80 to 111.00 key area if the price can break above 110.20 to 110.30 resistance level in the coming days.
Image: USDJPY Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price, which has already worked as strong support and pushed the price upward. Also, the ADX line is currently residing above the 25.00 level and gradually moving higher. It indicates that the current bullish momentum is quite strong and may continue further upward in the days ahead.
To conclude, as the price had an impulsive daily bullish candle close after breaking above 109.60 to 109.80 area, there is a high chance that the bulls may continue the bullish bias further in the coming days.