USDJPY has become impulsive and non-volatile after bouncing from 105.00 to 105.20 support level. USDJPY strikes above 109.00 psychological key area. Will the price recover further higher 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.
March 9, 2021, | AtoZ Markets – USDJPY is currently trading around 109.15 area and trying to push downside. After bouncing from 105.00 to 105.20 support level, the bulls pushed the price higher quite impulsively and gained almost 420 pips. As per the current price action, the price may revert back to the mean on the daily chart in the coming days.
Moreover, on Monday, Speaker Nancy Pelosi said that the U.S. House of Representatives would receive by Wednesday the Senate form of the sweeping $1.9 trillion Covid-19 stimulus packages upheld by President Joe Biden. Closing the last endorsement of one of the greatest U.S. anti-impoverishment measures since the 1960s. On the other hand, Japan affirmed its economy developed by twofold digits toward the finish of last year, as indicated by updated information that kept on showing strength even as this present quarter’s coronavirus crisis hinders the recuperation for the time being.
USDJPY Strikes Above as the Dollar Index Bulls Regained Momentum After NFP
USDJPY is currently residing near 109.15 area and trying to decline. However, the price is still residing over the dynamic level of 20 EMA on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY strikes over and currently trading around 109.15 area. As per the current price action, if the bulls sustain the bullish pressure further higher, the price may reach 109.50 to 110.00 key resistance area in the process. So, if the price reaches 109.50 to 110.00 area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price down towards 108.20 to 108.00 support area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price downside as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. Besides, the histogram’s volumes are gradually sloping downside. Both indicate that the bears may regain momentum in the days ahead.
USDJPY May Retrace Downward
According to the daily chart, USDJPY strikes over as the bulls are optimistic. As per the current scenario, if the price reaches 109.50 to 110.00 area and rejects with an impulsive daily bearish candle, the price may retrace downside towards 107.00 to 106.50 event level in the days ahead. So, if the price retraces towards 107.00 to 106.50 area and bounced upside with a daily bullish candle, the bulls may continue the bullish trend towards 109.50 to 110.00 key area again in the coming days.
Image: USDJPY Daily Chart
In addition, the dynamic level of 20 EMA is currently residing far below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement. An impulsive daily candle close is required to identify the definite momentum in the coming days.