USDJPY has become impulsive after bouncing from the bullish trendline support. USDJPY climbs over 104.00 psychological event level. Will bulls recover further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
December 1, 2020, | AtoZ Markets – USDJPY is currently trading around 104.50 area and trying to push upside. The price also broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, USDJPY may face strong resistance around 104.80 to 105.00 area in the coming days.
Federal Reserve Bank of Richmond President, Thomas Barkin said, “The U.S. economy indicates to be holding up in spite of a surge in Covid-19 cases and hospitalisations, obfuscating the case for the more fiscal stimulus.” He also added, “It’s difficult a tremendous drop in the ongoing data. Moreover, I’m contemplating about credit-card spending, which I will see each week. It truly hasn’t made a stride back yet.”
On the other hand, Japan is relaxing guidelines on part-time work for foreigners stuck in the nation because of the novel Covid-19 and experiencing difficulty supporting themselves, the public authority said on Tuesday. While transitory, the measurement, which will take effect from Tuesday is a progression of work curbs on foreigners in a maturing economy experiencing tremendous deficiencies of labourers. However, where the ruling party has been hesitant to grasp full-fledged immigration change.
USDJPY Climbs Over as the U.S. Economy Recovering Slowly
USDJPY is currently residing near 104.50 area and trying to recover higher. Moreover, the price also broke above the Kijun line and the Tenkan line on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY climbs over and currently trading around 104.50 area. As per the current price action, after an extended period of bullish pressure, the price requires a small retracement towards the dynamic level. So, if the price retrace downside towards 104.20 to 104.00 area and bounced upside, the bulls may continue the bullish pressure towards 104.80 to 105.00 area in the coming days.
In addition, 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 to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
USDJPY Still Holding the Bearish Trend
According to the daily chart, USDJPY climbs over but still residing inside the bearish channel. As per the current price action, if the price pushes further upside towards 104.80 to 105.00 area and rejects with an impulsive bearish candle close, the bears may regain momentum and decline towards 104.20 to 104.00 area as a first target. The second target will be 103.20. to 103.00 area if the price can break below 104.20 to 104.00 area in the days ahead.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price, which may work as strong resistance if the price close below it. Besides, the MACD lines are currently residing below the 0.00 level. It indicates that bears are still holding the bearish bias.
To conclude, as long as the price residing below 105.00 to 104.80 resistance level, the bias will remain bearish. A daily close is required to identify the definite momentum in the coming days.