USDJPY Found Support Around 107.50 Event Level – Will Strike Higher?


USDJPY bears have regained momentum after rejecting 111.00 to 110.50 key resistance level. USDJPY found support around 107.50 psychological event area. Will the price strike 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.

April 27, 2021, | AtoZ Markets – USDJPY is currently trading around 108.25 area and trying to recover higher. After bouncing from 103.00 to 103.50 support level, the bulls have regained momentum and pushed the price upside impulsively, and reached March 2020’s key area. As per the current price action, the price may face strong resistance around 109.00 to 109.20 area in the coming days.

USDJPY Found Support as the Overall Momentum Is Bullish

USDJPY is currently residing near 108.25 area and trying to climb upside. However, the price broke below the dynamic level of 20 EMA on the daily chart.

USDJPY Found Support

Image: USDJPY 4 Hour Chart

According to the 4-hour chart, USDJPY found support and currently trading around 108.25 area. As per the current price action, if the price can have an impulsive bullish candle close above the last candle’s high, the bulls may recover upside towards 109.00 to 109.20 area as a first target. The second target will be 110.50 to 111.00 key area if the price can break above 109.00 to 109.20 area in the coming days. On the contrary, if the price climbs upward towards 109.00 to 109.20 area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price downside towards 107.80 to 107.50 area in the process.

Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. Moreover, the MACD lines are currently residing below the 0.00 level after having a bullish crossover. It indicates that the bulls may sustain the bullish pressure further in the days ahead.

USDJPY May Decline Further Lower

According to the daily chart, USDJPY found support as the bulls are still optimistic. As per the current scenario, the price may retrace upward towards 109.00 to 109.20 area in the process. So, if the price retraces towards 109.00 to 109.20 area and rejects with a daily bearish candle, the bears may continue the bearish pressure towards 107.80 to 107.50 area as a first target. The second target will be 106.20 to 106.00 area if the price can break below 107.80 to 107.50 area in the coming days. Alternatively, if the price can break over 109.00 to 109.20 area with an impulsive bullish candle, the bulls may recover higher towards 110.50 to 111.00 area in the days ahead.

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 act 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 regain momentum 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, which indicates that the bulls are still residing on the market and may strike upward.

To conclude, after an extended period of bullish momentum, the price has successfully retraced downside towards 107.80 to 107.50 support level. As the overall momentum is still bullish, there is a high chance that the price may continue the bullish bias further in the coming days. 

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