USDJPY has become volatile and currently residing inside the ranges of 105.80 to 105.17 area. USDJPY facing resistance around 105.80 psychological level. Bears to continue the bias? What are the charts and technical indicators are saying? Read more to find further insights into today’s USDJPY Technical Analysis.
October 6, 2020, | AtoZ Markets – USDJPY is currently trading around 105.65 area and trying to decline. The price broke below 105.00 area last week but failed to sustain the bearish pressure further and came again to retest 105.72 to 105.80 resistance level. As per the current price action, the price may face strong support at the dynamic level of 20 EMA in the coming days.
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USDJPY Facing Resistance as the Intraday Event-Level Rejected the Price Second Time
USDJPY is currently residing around 105.65 area and trying to push downside. Furthermore, the price also found resistance on the Bollinger Bands upper band and pushed downside on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY facing resistance and currently residing near 105.65 area. As per the current price action, if the price pushed further down and have an impulsive bearish close below the dynamic level of 20 EMA, the bears may decline towards 105.29 to 105.17 support area in the days ahead. Alternatively, if the price reaches the dynamic level of 20 EMA and bounces upside with an impulsive bullish candle close, the bulls may regain momentum and strike higher towards 106.13 to 106.20 resistance area in the coming days.
In addition, the dynamic level of 2o EMA is currently residing below the price. Along with the Bollinger Bands middle and lower bands. The dynamic level may act as strong support to push the price upside. Besides, the Bollinger Band’s middle and lower bands may work as a confluence of the dynamic level in the coming days.
USDJPY Bears May Sustain the Bearish Trend
According to the daily chart, USDJPY facing resistance at the bearish trend line and currently trading around 105.65 areas. As per the current price action, if the price can have an impulsive daily bearish candle close below the dynamic level of 20 EMA, the bears may regain momentum and push lower towards 104.20 to 104.00 area in the process. In contrast, if the price bounces higher from the dynamic level and breaks above 105.72 to 105.80 resistance level, the bulls may recover higher towards 106.40 to 106.50 area in the coming days.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually slopping down. It indicates that bears may regain momentum in the coming days.
To conclude, after an impulsive bullish momentum, the price currently facing strong resistance at the bearish trend line. A daily close will help to identify the definite momentum in the days ahead.