USDJPY bears have regained momentum after hitting 106.10 to 106.20 event level. USDJPY found support around 105.00 psychological level. Will bulls strike upward 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.
February 23, 2021, | AtoZ Markets – USDJPY is currently trading around 105.10 area and trying to push upside. After bouncing from 104.50 to 104.65 support level, the bulls pushed the price higher quite impulsively, but failed to continue the bullish pressure over 106.10 to 106.20 event area. As per the current price action, the price also may find strong support at the dynamic level of 20 EMA on the daily chart in the process.
Furthermore, the U.S. House of Representatives Budget Committee on Monday endorsed enactment with $1.9 trillion in new Covid-19 alleviation, propelling the main concern of President Joe Biden toward a full House vote on entry anticipated last on running week. On the other hand, Japan’s administration cut its view on the all-up economy in February interestingly since April a year ago as an expanded highly sensitive situation to control Covid-19 diseases battered purchaser spending.
USDJPY Found Support as the Uptrend Line Is Working Strongly
USDJPY is currently residing near 105.10 area and trying to recover higher. However, the price is still residing below the dynamic level on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY found support and currently trading around 105.10 area. As per the current price action, if the price pushed further upward and breaks over the dynamic level with an impulsive bullish candle, the bulls may sustain the bullish pressure towards 106.10 to 106.20 resistance again in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break over the dynamic level in the process. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.
USDJPY Bulls Are Optimistic
According to the daily chart, USDJPY found support and currently residing near 105.10 area. As per the current scenario, if the price can have an impulsive daily bullish candle close above 104.90 to 105.00 support level, the bulls may regain momentum and recover higher towards 106.10 to 106.20 area as a first target. The second target will be 106.90 to 107.00 key area if the price can break over 106.10 to 106.20 area in the coming days.
Image: USDJPY Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may act as a strong support to push the price upward. Besides, the Kijun line may work as a confluence of the dynamic level in the process. Along with this, the price also broke over the Kumo Cloud, which is also a good indication of bullish momentum.
To conclude, as long as the price residing over the dynamic level of 20 EMA on the daily chart, the bias will remain bullish. A daily close is needed to identify the definite momentum in the days ahead.