USDJPY Found Support Around 108.50 Area – Will Recover Higher?


USDJPY has become volatile and still residing inside that range of 108.30 to 109.70 area. USDJPY found support around 108.50 event area. Will the price recover further higher 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 11, 2021, | AtoZ Markets – USDJPY is currently trading around 108.90 area and trying to push upside. After bouncing from 107.50 to 107.70 support level, the bulls have regained momentum and pushed the price upward quite impulsively, but failed to sustain the bullish pressure above 109.40 to 109.70 psychological resistance area. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.

USDJPY Found Support as the Event Level Worked Strongly

USDJPY is currently residing near 108.90 area and trying to climb upside. Moreover, the price had a daily bullish candle close above 108.30 to 108.50 support level.

USDJPY Found Support Around 108.50 Area - Will Recover Higher?

Image: USDJPY 4 Hour Chart

According to the 4-hour chart, USDJPY found support and currently trading around 108.90 area. As per the current scenario, if the price can break above the dynamic level with an impulsive bullish candle close, the bulls may push the price upward towards 109.40 to 109.70 area in the process. On the contrary, if the price face resistance at the dynamic level and has a bearish candle close below it, the bears may regain momentum and 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 if the price can break below 108.50 to 108.30 area in the coming days.

Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. However, the bulls may continue further upside if the price can break above the dynamic level in the days ahead. Also, the MACD lines are currently residing below the 0.00 level and may have a bullish crossover. It indicates that the bulls may sustain the bullish pressure further in the process.

USDJPY May Climb Higher

According to the daily chart, USDJPY found support as the bulls are still optimistic. As per the current price action, if the price can break over the dynamic level of 20 EMA with an impulsive bullish candle, the bulls may sustain the bullish bias further towards 109.40 to 109.70 area as a first target. The second target will be 110.70 to 111.00 key area if the price can break above 109.40 to 109.70 area in the process. On the other hand, if the price face resistance at the dynamic level and had a daily bearish candle close below 108.50 to 108.30 area, the bears may regain momentum and push the price downward towards 107.70 to 107.50 area in the coming days.

USDJPY Found Support

Image: USDJPY Daily Chart

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong resistance to push the price down. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the bulls may continue further upward if the price can break over the dynamic level in the coming days. Moreover, the Kumo Cloud is still holding the price as strong support. It indicates that the bulls are still residing on the market and may strike higher.

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

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