USDJPY has become volatile and corrective, but still residing below 109.00 to 108.90 resistance area. USDJPY is holding the bearish momentum below 109.00 significant area. Will the price decline further lower 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 25, 2021, | AtoZ Markets - USDJPY is currently trading around 108.60 area and trying to push downside. After rejecting 109.30 to 109.20 event area, the bears pushed the price down, but failed to break below 108.60 to 108.50 support level. However, the price is residing inside the ranges of 109.00 to 108.50 area for an extended period. As per the current price action, the price may face strong support around 108.60 to 108.50 area again in the coming days.
USDJPY Holding the Bearish Momentum Below the Psychological Event Area
USDJPY is currently residing near 108.60 area and trying to push downward. However, the price also broke below the Kumo Cloud on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY is holding the bearish momentum and currently trading around 108.60 area. As per the current scenario, if the price pushes lower and breaks below 108.60 to 108.50 support level with an impulsive bearish candle, the bears may sustain the bearish pressure towards 108.10 to 108.00 area in the coming days. On the contrary, if the price bounced upside from 108.50 to 108.60 support area with an impulsive bullish candle, the price may recover higher towards 108.90 to 109.00 area again in the days ahead.
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 further downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
USDJPY May Push Further Downward
According to the daily chart, USDJPY is holding the bearish momentum as the bears are optimistic. As per the current price action context, if the price can break below 108.60 to 108.50 support level with an impulsive daily bearish candle close, the bears may continue the bearish pressure towards 108.10 to 108.00 area as a first target. The second target will be 107.10 to 107.00 area if the price can break below 108.10 to 108.00 area in the coming days.
Image: USDJPY Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price, which has already worked as strong resistance and pushed the price down. Along with this, the MACD lines are currently residing above the 0.00 level and gradually sloping downward. It indicates that the bears may sustain the bearish pressure further in the process.
To conclude, as the price rejected 109.00 to 108.90 resistance area with a daily bearish candle, there is a high chance that the bears may continue further lower. An impulsive daily close is required to identify the definite momentum in the coming days.