USDJPY has become volatile and corrective, but still holding the bearish momentum below 104.20 to 104.00 area. USDJPY sustains below 104.00 psychological resistance level. Bears to continue the bearish bias 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.
January 26, 2021, | AtoZ Markets – USDJPY is currently trading around 103.75 area and trying to recover higher. After bouncing from 102.60 to 102.70 key support level, the bulls pushed the price upward quite impulsively and gained around 180 pips. As per the current price action, the price may face strong resistance around 104.00 to 104.20 area in the coming days.
Furthermore, U.S. President Joe Biden uttered yesterday that he is available for negotiating the qualification necessities of his proposed $1,4000 COVID-19 stimulus check, a nod to administrators who have said they ought to be more focused on lower-incomes. However, the last round of stimulus checks, including the $600-per-individual check affirmed in December 2020, was usually restricted to people’s income under $75,000 per year and wedded couple’s income under $150,000.
On the other hand, Haruhiko Kuroda, Governor of Bank of Japan, said yesterday a mix of expansionary fiscal and financial policies has been fruitful in keeping the nation’s economy static despite the headwinds COVID-19 pandemic.
USDJPY Sustains Below as the Bears Are Still Residing on the Market
USDJPY is currently residing near 103.75 area and trying to push higher. However, the price is still residing below the Kumo Cloud on the daily chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY sustains below and currently trading around 103.75 area. As per the current price action, if the price can have an impulsive bullish candle close above the last bullish pin bar’s high, the bulls may recover higher towards 104.00 to 104.10 area as a first target. The second target will be 104.60 to 104.70 area if the price breaks above 104.00 to 104.10 area in the coming days. Alternatively, if the price breaks below 103.70 to 103.65 area with an impulsive bearish candle, the bears may regain momentum and decline towards 103.30 to 103.20 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing near the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong support if the price bounces from it. Besides, the Bollinger Bands may work as a confluence of the dynamic level in the process. Hence, the bears may regain momentum if the price can break below the dynamic level in the coming days.
Bears May Continue the Bearish Trend
According to the daily chart, USDJPY sustains below as the bears are still optimistic. As per the current price action context, if the price can have an impulsive daily bearish candle close below 103.70 to 103.60 area, the bears may regain momentum and continue the bearish trend towards 102.60 to 102.50 area in the coming days.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price. Along with the Kijun line and the Tenkan line. So, the bears may regain momentum if the price can break below the dynamic level of 20 EMA and the Kijun line in the process.
To conclude, as long as the price residing below 104.20 to 104.00 psychological resistance area, the bias will remain bearish. A daily close is required to identify the definite momentum in the coming days.