USDJPY has become impulsive after rejecting 106.00 psychological resistance level. USDJPY facing support at around 105.30 area and had an intraday close above it. Will bears continue lower? What are the charts and technical indicators are saying? Read more to find further insights into today’s USDJPY Technical Analysis.
October 13, 2020, | AtoZ Markets – USDJPY is currently trading around 105.40 area and trying to recover higher. The price broke below the dynamic level of 20 EMA impulsively on the daily chart. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the intraday chart in the coming days.
Bank of Japan Governor Haruhiko Kuroda worried on Monday his status to make extra financial facilitating steps, saying the national bank had not run out of instruments to pad the monetary blow from the COVID-19 pandemic. Moreover, Kuroda said Japan’s economy had arrived in a desperate predicament in April-June and that the overall picture looked “much better” than a couple of months prior, with exports, yield, and capital use “genuinely powerful.”
USDJPY Facing Support as Investor’s Psychology Working against the Japanese Yen
USDJPY is currently residing near 105.40 area and trying to push upside. However, the price may be facing support at around 105.30 area for the short-term period, but the overall bias is still bearish.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY is facing support and currently residing near 105.40 area. As per the current price action, if the price retrace towards the dynamic level of 20 EMA, which is around 105.60 area and had a 4-hour candle close, the bears may sustain the bearish pressure towards 104.50 to 104.40 support area in the coming days. Alternatively, if the price breaks above the dynamic level with an impulsive bullish candle, the bull may recover higher towards 106.00 to 106.10 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands’ middle and upper band. So, the dynamic level may act as strong resistance to push the price downward. Besides, the Bollinger Band‘s middle band may work as a confluence of the dynamic level in the process.
USDJPY Bears Are Optimistic
According to the daily chart, USDJPY is facing support and currently trading around 105.40 area. As per the current price action, if the price can break below 105.30 to 105.20 support area with an impulsive bearish candle close, the bears may sustain the bearish bias towards 104.50 to 104.10 area as a first target. The second target will be 103.10 to 103.00 key level if the price can break below 104.50 to 104.10 area in the days ahead.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong support in the process. Also, the MACD lines are currently residing below 0.00 area and may have a bearish cross over. It indicates that bears may sustain the bullish pressure further in the coming days.
To conclude, after rejecting the bearish trend line, the bears pushed the price down quite aggressively. A daily close is required to identify the definite momentum in the coming days.