USDJPY bulls regained momentum and broke above 109.00 to 109.30 resistance level. USDJPY surged over 110.00 psychological key area. Will it sustain the bullish trend further 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 30, 2021, | AtoZ Markets – USDJPY is currently trading around 110.25 area and trying to recover higher. After bouncing from 108.30 to 108.50 support level, the bulls pushed the price upside quite impulsively and broke above 109.80 to 110.00 key area. As per the current price action context, the price may face strong resistance around 110.80 to 111.00 area in the days ahead.
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USDJPY Surged Over As the U.S. Dollar Index Bullish Trend Continues
USDJPY is currently residing near 110.25 area and trying to climb upward. However, the bulls have gained almost 650 pips after bouncing from 103.60 to 104.00 support area.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY surged over and currently trading around 110.25 area. As per the current price action, the bulls may sustain the bullish pressure further towards 110.80 to 111.00 area in the process. So, if the price recovers towards 110.80 to 111.00 area and rejects with a bearish candle, the bears may regain momentum and decline towards 110.00 to 109.80 support level 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. Along with this, the MACD lines are currently residing above the 0.00 level and moving higher. It indicates that the bulls may continue the bullish trend further in the days ahead.
USDJPY May Recover Further Higher
According to the daily chart, USDJPY surged over and currently residing near 110.25 area. As per the current scenario, if the price breaks over 110.80 to 111.00 area with an impulsive bullish candle, the bulls may sustain the bullish bias towards 112.00 to 112.20 area in the coming days. Alternatively, if the price rejects 111.00 to 110.80 area with a daily bearish candle, the bears my retrace downside towards 110.00 to 109.80 area in the days ahead.
Image: USDJPY Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, it may pull the price down as a mean reversion if USDJPY faces resistance around 111.00 to 110.80 area in the process. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.
To conclude, after an extended period of volatility, the bulls have successfully regained momentum. However, the price may retrace lower if 110.80 to 111.00 area works as strong resistance in the days ahead.