USDJPY has become volatile and indecisive after bouncing from 103.70 to 103.50 support level. USDJPY remains over 103.70 psychological event level. Is it the end of the bearish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
December 15, 2020, | AtoZ Markets – USDJPY is currently trading around 104.10 area and trying to recover higher. However, the price broke below 103.70 support level but failed to hold the bearish momentum further and had a bullish engulfing 4-hour candle close. The price broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, USDJPY may face strong resistance around 104.50 to 104.60 area in the coming days.
USDJPY Remains Over as Investors Are Worried About Japan’s Pandemic Recovery This Year
USDJPY is currently residing near 104.10 area and trying to push upside. In addition, the price is still residing inside the ranges of 104.60 to 103.50 area.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY remains over and currently trading around 104.10 area. As per the current price action, if the price can have an impulsive bullish candle close above 104.20 area, the bulls may sustain the bullish pressure towards 104.50 to 104.60 psychological resistance level in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. Also, the MACD lines are currently residing below the 0.00 level and had a bullish intersection. It indicates that bulls may sustain the bullish pressure further in the coming days.
USDJPY Bears Are Still Optimistic
According to the daily chart, USDJPY remains over but the bears are still optimistic. As per the current price action, if the price pushes further upside and breaks above 104.50 to 104.60 resistance with an impulsive bullish candle, the bulls may recover higher towards the bearish channel resistance as a first target. The second target will be 105.80 to 106.00 area if the price breaks above the bearish channel resistance in the coming days.
Image: USDJPY Daily Chart
On the contrary, if the price rejects 104.50 to 104.60 with an impulsive bearish candle close, the bears may regain momentum and decline towards 103.70 to 103.50 area as a first target. The second target will be 102.60 to 102.50 area if the price breaks below 103.70 to 103.50 area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line may work as a confluence of the dynamic level in the days ahead.
To conclude, as long as the price remains inside the bearish channel, the bias will be bearish. A daily close is required to identify the definite momentum in the coming days.