USDJPY climb higher today morning during the Asian session. USDJPY strikes above 104.00 psychological area. 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.
November 24, 2020, | AtoZ Markets – USDJPY is currently trading around 104.50 area and trying to push downside. The price also broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the daily chart in the coming days.
Charles Evans, President of Chicago Federal Reserve Bank, said on Monday there is still “a serious long approaches” for the U.S. recuperation from the Covid-19 emergency, adding that he anticipates that the Fed should keep interest rates at their current almost zero levels until probably into 2024. In addition, Evans added, “On the off chance that the economy gets one year from now and we jump on top of the virus, and the vaccines are viable, and they are conveyed rapidly and all through, at that point we will be in a greatly improved circumstance.”
On the other hand, Haruhiko Kuroda, Governor of Bank of Japan said on last week the nation’s monetary stability could crumble up if the harm to commercial banks’ benefits from COVID-19 endured.
USDJPY Strikes Above as Kurdo Said Nation’s Monetary Stability Could Be Disrupted
USDJPY is currently residing near 104.50 area and trying to decline. After bouncing from 103.65 to 103.70 area, the bulls pushed the price upward quite aggressively but failed to break above 104.50 to 104.60 resistance level.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY strikes above and currently trading around 104.50 area after having a bearish engulfing bar. As per the current price action, if the price can break below the engulfing candle’s low, the bears may push the price down towards 104.10 to 104.00 area in the process. So, if the price reached 104.10 to 104.00 area and bounced, the bulls may recover higher towards 104.50 to 104.60 area again. Along with this, if the bears can take over 103.70 to 103.65 area impulsively, USDJPY may decline towards 103.10 to 103.00 area 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 upside. Besides, the Stochastic Oscillator lines are currently residing above overbought level 80 and may have a bearish cross over. It indicates that bears may sustain the bearish pressure further in the process.
USDJPY Bears Are Still Optimistic
According to the daily chart, USDJPY strikes above and currently residing near 104.50 area. As per the current price action, if the price can have an impulsive bearish candle close below 104.60 to 105.50 area, the bears may continue the bearish trend towards 103.10 to 103.00 area in the process. Alternatively, if the price can break above 104.50 to 104.60 area with a daily candle, the bulls may recover higher towards the bearish channel resistance.
Image: USDJPY Daily Chart
Also, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing inside the bearish channel, the bias will remain bearish. A daily close required to identify the definite momentum in the coming days.