USDJPY bulls have regained momentum after bouncing from 107.50 to 108.00 area. USDJPY bounced higher from 107.50 psychological support level. Will the bulls continue further upside in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
May 4, 2021, | AtoZ Markets – USDJPY is currently trading around 109.50 area and trying to recover higher. After bouncing from 107.50 to 108.00 support level, the bulls pushed the price higher quite impulsively, but failed to break over 109.00 to 109.50 event area and had a daily bearish candle close yesterday. As per the current price action context, the dynamic level of 20 EMA may carry the price as strong support on the intraday chart in the coming days.
USDJPY Bounced Higher As the Overall Momentum Is Bullish
USDJPY is currently residing near 109.50 area and trying to climb further. However, after an impulsive bullish momentum, the price has successfully retraced lower towards 108.00 to 107.50 support area.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY bounced higher and currently trading around 109.50 area. As per the current scenario, if the price can have an impulsive bullish candle close above 109.00 to 109.30 area, the bulls may sustain the bullish pressure towards 110.00 to 110.20 area as a first target. The second target will be 111.00 to 111.30 key area if the price can break over 110.00 to 110.20 resistance level in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support in the process. In addition, the MACD lines are currently residing above the 0.00 level and gradually moving upward. It indicates that the bulls are still residing on the market may recover further higher in the days ahead.
USDJPY Bulls Are Still Optimistic
According to the daily chart, USDJPY bounced higher as the overall bias is still bullish. As per the current price action, if the price can have an impulsive daily bullish candle close over 109.00 to 109.30 intraday resistance area, the bulls may continue the bullish pressure towards 111.00 to 111.30 area in the days ahead. On the contrary, if the price can have an impulsive bearish candle close below 109.30 to 109.00 area, the bears may regain momentum and push the price downside towards 108.00 to 107.50 area again in the process.
Image: USDJPY Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support if the price can have an impulsive daily bullish candle close above it. However, the bears may regain momentum if the price can have a daily bearish candle close below the dynamic level of 20 EMA in the days ahead. Furthermore, the Kumo Cloud is still residing below the price and holding the price as strong support.
To conclude, as long as the price residing over the Kumo Cloud, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.