USDJPY has become volatile and corrective after bouncing from 104.00 key area. USDJPY strikes above 104.50 psychological event level with an impulsive daily bullish candle close. Will bulls recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
November 3, 2020, | AtoZ Markets – USDJPY is currently trading around 104.70 area and trying to push upside. 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.
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USDJPY Strikes Above as the Investors Optimistic About the Upcoming U.S. Presidential Election
USDJPY is currently residing near 104.70 area and trying to recover upward. However, the price also broke above the Kijun line and the Tenkan line on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY strikes above and currently trading around 104.70 area. As per the current price action, if the price can have an impulsive bullish candle close above the last candle’s high, USDJPY may recover higher towards 105.10 to 105.20 area in the days ahead. Alternatively, if the price pushes down and breaks below 104.60 to 104.50 support area impulsively, the bears may regain momentum and decline towards 104.10 to 104.00 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.
USDJPY Bulls May Break Above the Bearish Trend Line
According to the daily chart, USDJPY strikes above as bulls are still optimistic. As per the current scenario, if the price can break above 105.10 to 105.20 area and had a daily bullish close over the bearish trend line, the bulls may push the price upside towards 106.00 to 106.10 area in the process. In contrast, if the price is rejected by the dynamic level and had a bearish candle close below it, the bears may decline towards 104.10 to 104.00 area as a first target. The second target will be 103.10 to 103.00 area in the process.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. The bulls may sustain the bullish pressure if the price can break above it. Also, the MACD lines are currently residing below the 0.00 level and created a bullish divergence. It indicates that bulls may recover higher in the coming days.
To conclude, USDJPY has bounced from 104.00 to 104.10 support area third time in a row, which indicates that bulls are trying harder to hold the price above this psychological level. A daily close is required to identify the definite momentum in the process.