USDJPY Faced Resistance Around 109.70 Event Area – Will Push Down?


USDJPY has become volatile and still residing inside the ranges of 109.70 to 108.30 area. USDJPY faced resistance around 109.70 significant event area. Will the bears push the price down 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 18, 2021, | AtoZ Markets – USDJPY is currently trading around 109.08 area and trying to push lower. After bouncing from 108.30 to 108.50 support level, the bulls have regained momentum and pushed the price upside impulsively, but failed to continue the bullish pressure over 109.40 to 109.70 resistance area. As per the current price action context, the price may face strong support at the uptrend line on the daily chart in the coming days.

USDJPY Faced Resistance as the Event Level Worked Strongly

USDJPY is currently residing near 109.08 area and trying to decline further. However, the price also broke below the Bollinger Bands’ middle band on the intraday chart.

USDJPY Faced Resistance

Image: USDJPY 4 Hour Chart

According to the 4-hour chart, USDJPY faced resistance and currently trading around 109.08 area. As per the current scenario, if the price can have an impulsive bearish candle close below the Bollinger Bands’ lower band, the bears may sustain the bearish pressure towards 108.50 to 108.30 area as a first target. The second target will be 107.70 to 107.50 area if the price can break below 108.50 to 108.30 area in the days ahead.

Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process.

USDJPY Bulls May Regain Momentum

According to the daily chart, USDJPY faced resistance and currently trading around 109.08 area. As per the current price action, if the price can break below the uptrend line with an impulsive bearish candle, the bears may push the price down towards 108.50 to 108.30 area as a first target. The second target will be 107.70 to 107.50 area. On the other hand, if the price bounced upward from the uptrend line and had a daily bullish candle above it, the bulls may regain momentum and recover higher towards 109.40 to 109.70 area as a first target. The second target will be 110.70 to 111.00 area if the price can break above 109.40 to 109.70 area in the coming days.

USDJPY Faced Resistance

Image: USDJPY Daily Chart

In addition, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong resistance if the price can have an impulsive bearish candle close below it. However, the bulls may regain momentum if the price can have a daily bullish candle close over it. Moreover, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. It indicates that the price may decline further lower in the process.

To conclude, as long as the price residing over the uptrend line, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.

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