USDJPY has become volatile but still maintaining the bearish bias below 103.90 to 103.80 event level. USDJPY faced resistance around 103.90 psychological area. Will bears sustain the bearish trend further 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.
December 29, 2020, | AtoZ Markets – USDJPY is currently trading around 103.65 area and trying to push downside. After bouncing from 103.00 to 103.10 support level, the bulls regained momentum and pushed the price upside, but failed to break over 103.80 to 103.90 resistance zone. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the intraday chart in the coming days.
Moreover, BOJ (Bank of Japan) lawmakers were separated on how long to go on tweaking its stimulus program, with some requiring an update of its technique for accomplishing 2% inflation, an outline of perspectives voiced at the December rate review illustrated. The strategy test will focus on tweaking the Bank of Japan’s acquisition of trade exchanged assets (ETF) and activities for controlling the growth curve, as indicated in the outline of the December 17 to 18 meeting delivered on Monday.
On the other hand, U.S. President Donald Trump approved a bill of $900 billion in pandemic alleviation, the White House stated, setting off the progression of support to people and organizations and turning away the risk of a fractional government closure on Tuesday. Furthermore, to support to stem the financial impacts of the pandemic, the enactment Congress passed Monday likewise incorporates $1.4 trillion in government spending to finance federal organizations through the finish of the monetary year in September.
USDJPY Faced Resistance as Japan’s Economy Recovering Slowly
USDJPY is currently residing nears 103.65 area and trying to decline. However, the price is still residing below the dynamic level of 20 EMA on the daily chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY faced resistance and currently trading around 103.65 area. As per the current scenario, if the price can break below the dynamic level with an impulsive bearish candle, the bears may sustain the bearish pressure further towards 103.10 to 103.00 area. Alternatively, if the price breaks above 103.80 to 103.90 resistance area with a 4-hour bullish candle, USDJPY may recover higher towards 104.60 to 104.70 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 upward. So, the bears may continue further downside if the price can break below the dynamic level in the days ahead. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish intersection. Besides, the histograms are sloping down gradually. Both are indicating that the bears may sustain the bearish pressure further in the coming days.
USDJPY Bears Are Still Optimistic
According to the daily chart, USDJPY faced resistance and currently residing near 103.65 area. As per the current price action, if the price can have an impulsive bearish candle close below 103.90 to 103.80 area, the bears may push the price downside towards 103.10 to 103.00 area as a first target. The second target will be 102.60 to 102.50 key area.
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 days ahead.
To conclude, as long as the price residing below the dynamic level on the daily chart, the bias will remain bearish. A daily close will help to identify the definite momentum in the coming days.