USDJPY nose dive below 105.00 area after rejecting the bearish trend line. USDJPY bears regained momentum and pushed the price downside quite impulsively. Will continue the bearish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
November 17, 2020, | AtoZ Markets – USDJPY is currently trading around 104.50 area and trying to decline further. After bouncing from the 103.20 to 103.00 support level, the bulls pushed the price upside quite aggressively but failed to break above the bearish trend line. As per the current scenario, USDJPY may face strong support around 104.20 to 104.00 area in the coming days.
The United States Chamber of Commerce said on Monday it was anxious the United States was abandoned after 15 Asia-Pacific economies on Sunday framed the world’s biggest free-trade alliance, solidifying China’s prevailing role in the regional trade. Moreover, the Chamber invited the liberalizing trade advantages of the new Regional Comprehensive Partnership Agreement (RCEP), saying United States exporters, laborers, and farmers required more noteworthy admittance to Asian markets. In any case, it said Washington ought not to join the alliance.
On the other hand, Japan stocks were upper after the close on Monday, as increases in the Paper and Pulp, Railway and Bus and Real Estate departments drove shares higher. Also, at the close in Tokyo Stock Market, the Nikkei 225 hit another 5-year high and gained 2.05%.
USDJPY Bears Regained Momentum as the Japan Stocks Are Performing Great
USDJPY is currently residing near 104.50 area and trying to push the price downside. The price also broke below the dynamic level of 20 EMA on the daily chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY bears regained momentum and currently trading around 104.50 area. As per the current price action, if the price pushes further down and breaks below the Kumo Cloud, the bears may decline towards 104.20 to 104.00 support area. So, if the price reaches 104.20 to 104.00 area and bounced upside with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards 104.90 to 105.00 area as a first target. The second target will be 105.50 to 105.60 area.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenakn line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
USDJPY May Decline Towards March’s Key Level
According to the daily chart, USDJPY bears regained momentum as investors are optimistic. As per the current price action, if the price can break below 104.20 to 104.00 support area, the bears may sustain the bearish trend towards 103.20 to 103.00 area as a first target. The second target will be 101.20 to 101.00 area if the price can break below 103.20 to 103.00 area in the days ahead.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downward in the process. Besides, the MACD lines are currently residing below the 0.00 area and may have a bearish cross over. It indicates that bears may sustain the bearish bias further in the days ahead.
To conclude, after rejecting the bearish trend line, the bears regained control of the market quite strongly. A daily close will help to identify the definite momentum in the coming days.