USDJPY has become volatile and corrective but still holding the bearish bias below 103.30 to 103.20 area. USDJPY sustains below 103.20 psychological resistance level. Will bears continue the bearish trend further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
January 5, 2020, | AtoZ Markets – USDJPY is currently trading around 103.00 area and trying to push downside. After bouncing from 102.75 to 102.70 support level, the bulls push the price quite impulsively. However, failed to break above 103.20 to 103.30 area. As per the current price action, the price may face strong support around 102.75 to 102.70 area in the coming days.
Moreover, Cleveland Fed President Loretta Mester said on Monday, U.S. monetary development could climb later this current year if most Americans are inoculated against the Covid-19. However, the increases would implausibly be sufficient for the Federal Reserve to pull out its support. She also added the economy is probably going to battle in the near term after an ascent in Covid-19 contaminations prompted more restrictions, both voluntary and mandated.
On the other hand, Japan’s production activity finished a record 19-month run of decreases in December as yield settled without precedent for a very long time. Recommending manufacturers are shaking off the negative effect from the Covid-19 pandemic. Besides, the private-area data stands out fairly from a week ago’s administration figures that demonstrated industrial yield development slowed down in November because of decreases in car production on debilitating U.S. and Australia-bound shipments.
USDJPY Sustains Below as Coronavirus Slowed Down U.S. Economic Growth
USDJPY is currently residing near 103.00 area and trying to decline. However, the price is still residing below the Kumo Cloud on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY sustains below and currently trading around 103.00 area. As per the current price action, if the price can have an impulsive 4-hour bearish candle close below 103.00 area, the bears may sustain the bearish pressure towards 102.75 to 102.70 area in the process. So, if the price reaches 102.75 to 102.70 support area and bounced upside, the bulls may regain momentum and recover higher towards 103.20 to 103.30 area again in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may push the price downside as a strong resistance. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
USDJPY May Continue the Bearish Trend
According to the daily chart, USDJPY sustains below as bears are still optimistic. As per the current scenario, if the price can have an impulsive daily bearish candle close below 103.30 to 103.20 resistance level, the bears may sustain the bearish trend towards 102.75 to 102.70 area as a first target. The second target will be 102.20 to 102.00 area if the price can break below 102.75 to 102.70 area in the days ahead.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong resistance to push the price further downward. Also, the MACD lines are currently residing below the 0.00 level. It indicates that bears are still on the market may continue the bias in the process.
To conclude, after an extended period of volatility, the price found resistance at the dynamic level of 20 EMA. A daily close is required to identify the definite momentum in the coming days.