USDJPY Nose Dive Below 108.50 Area – Will Decline Further?


USDJPY bears have regained momentum after rejecting 111.00 to 110.50 resistance area. USDJPY nose dive below 108.50 support level. 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. 

April 20, 2021, | AtoZ Markets – USDJPY is currently trading around 108.20 area and trying to push upside. After bouncing from 108.50 to 108.80 support level, the bulls pushed the price higher quite impulsively, but failed to sustain the bullish bias over 110.50 to 111.00 psychological resistance area. As per the current price action, the price may retrace upward toward the dynamic level of 20 EMA on the intraday chart in the coming days.

USDJPY Nose Dive As the Key Resistance Level Worked Strongly

USDJPY is currently residing near 108.20 area and trying to climb upward. However, the price was also rejected by the bearish channel resistance on the daily chart.

USDJPY Nose Dive

Image: USDJPY 4 Hour Chart

According to the 4-hour chart, USDJPY nose dive and currently trading around 108.20 area. As per the current scenario, the price may retrace higher towards 108.50 to 108.80 event area in the process. So, if the price retraced upward towards 108.50 to 108.80 area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price down towards 107.70 to 107.50 area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Moreover, the Stochastic Oscillator lines are currently residing above the oversold level 20 after having a bullish crossover. It indicates that the price may retrace upwards before continuing the bearish momentum further in the days ahead.

USDJPY May Continue the Bearish Pressure

According to the daily chart, USDJPY nose dive and currently residing near 108.20 area. As per the current price action context, the price may climb higher towards 108.50 to 108.80 area in the days ahead. So, if the price rejects 108.50 to 108.80 area with an impulsive bearish candle close, the bears may continue the bearish pressure towards 107.70 to 107.50 area as a first target. The second target will be 106.30 to 106.00 area if the price can break below 107.70 to 107.50 event area in the process.

USDJPY Nose Dive

Image: USDJPY Daily Chart

Along with this, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance to push the price down. Also, the ADX line is currently residing above level 40 and gradually moving upside. It indicates that the current bearish momentum is quite strong may sustain further in the days ahead.

To conclude, as the price broke below the higher low with a daily bearish candle, there is a high chance that USDJPY may decline further lower. A daily close is needed to identify the definite momentum in the coming days. 

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