USDJPY has become impulsive and strikes upside with a strong daily bullish engulfing candle. USDJPY bulls strike above 104.50 psychological event level. Will recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
November 10, 2020, | AtoZ Markets – USDJPY is currently trading around 105.00 area and trying to push downside. After breaking below the 104.50 area last week, the bears pushed the price downward but failed to hold the bearish bias. As per the current price action, USDJPY may retrace downside towards 104.50 to 104.00 area in the coming days.
Federal Reserve Governor Randal Quarles said on Monday that while the underlying market tensions from the Covid-19 pandemic emergency has passed, a “distinct, terrible, and complicated” challenge remains. Quarles also added, “The shock of the COVID case is gone, replaced by a more clear perspective on its financial results. Besides, I’m sure that we will work through them together, uphold those hardest hit, and guarantee that our financial sores don’t become scars.”
On the other hand, Japanese Prime Minister Yoshihide Suga stated his council on Tuesday to compile a package of stimulus estimates focusing on steps to reanimate an economy hit by the Covid-19 pandemic, the nation’s economy minister said.
USDJPY Bulls Strike as the U.S. Election Compels Assets to Best Week in Several Months
USDJPY is currently trading around 105.00 area and trying to decline. Moreover, the price also broke above the dynamic level of 20 EMA, according to the daily chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY bulls strike and currently residing near 105.00 area. As per the current price action, if the price pushes further down towards 104.50 to 104.00 support and bounces upside with an impulsive bullish candle close, the bulls may recover higher towards 106.00 to 106.10 area in the days ahead. Alternatively, if the price pushes downside and breaks below 104.50 to 104.00 area impulsively, the bears may decline towards 103.20 to 103.00 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish intersection. It indicates that bears may sustain the bearish pressure further.
USDJPY Bulls Are Optimistic
According to the daily chart, USDJPY bulls strike higher with an impulsive bullish engulfing candle. As per the current price action context, the price may retrace 50% of the engulfing candle before continuing further upside. So, if the price retraces 50% of the engulfing candle and had a bullish close above 104.00 to 104.50 support area, the bulls may recover higher towards 106.00 to 106.10 area as a first target. The second target will be 108.00 to 108.10 area if the price can break above the bearish trend line, after that 106.00 to 106.10 resistance area in the process.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may act as strong support in the days ahead. Besides, the MACD lines are currently residing below the 0.00 level and had a bullish cross over. It indicates that bulls may recover further in the process.
To conclude, after a false bearish breakout, the bulls regained momentum and engulfed the last week’s price action. A daily close is required to identify the definite momentum in the process.