USDJPY bulls have regained momentum after bouncing from 104.50 to 104.70 support area. USDJPY is facing resistance around 105.60 to 105.75 event level. Bears to regain momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
February 16, 2021, | AtoZ Markets – USDJPY is currently trading around 105.53 area and trying to recover higher. After bouncing from 104.50 to 104.70 support level, the bulls pushed the price upside quite impulsively, but failed to break over 105.60 to 105.75 resistance and had a 4-hour bearish pin bar close. As per the current price action, the price may retrace towards the dynamic level on the intraday chart in the coming days.
Along with this, Janet Yellen, the U.S. Treasury Secretary on Friday encouraged G7 finance pioneers to “go large” with an extra monetary stimulus to recuperate from the Covid-19 pandemic and disclosed to them that the Joe Biden administration was focused on multilateral commitment and battling environmental change. On the other hand, Haruhiko Kuroda, Governor of the Bank of Japan, said today the new stock value rally reflected market optimism over the worldwide financial viewpoint, dismissing views its super-free financial approach was fuelling a resource value bubble.
USDJPY Facing Resistance as the Price Requires a Downside Retracement
USDJPY is currently residing near 105.53 area and trying to push upward. However, the price is also facing resistance at the Bollinger Bands’ upper band on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY is facing resistance and currently trading around 105.53 area. As per the current scenario, if the price can have an impulsive bearish candle close below the last pin bar low, the price may retrace towards 105.15 to 105.00 support area in the process. So, if the price retraces towards 105.15 to 105.00 area and bounced upside with a bullish candle, the bulls may sustain the bullish pressure towards 105.60 to 105.75 area as a first target. The second target will be 106.40 to 106.50 area if the price can break over 105.60 to 105.75 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong support to push the price higher. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process.
USDJPY May Continue the Bullish Trend
According to the daily chart, USDJPY is facing resistance, but the bulls are still optimistic. As per the current price action, if the price can break above 105.60 to 105.75 resistance level with an impulsive daily bullish candle, the bulls may sustain the bullish pressure towards 106.40 to 106.50 area in the coming days. Alternatively, if the price rejects 105.75 to 105.60 area with an impulsive daily bearish candle, the bears may regain momentum and decline towards 104.70 to 104.50 area again in the process.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and gradually moving upward. It indicates that the bulls may continue the bullish bias further in the process.
To conclude, as long as the price residing over the dynamic level, the bias will remain bullish. A daily close is required to identify the definite momentum in the days ahead.