USDJPY has become impulsive, and still holding the bullish bias over 108.00 to 108.20 support level. USDJPY sustains the bullish trend over 108.00 psychological event level. Will bulls push the price 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 16, 2021, | AtoZ Markets – USDJPY is currently trading around 109.20 area and trying to push higher. After breaking over 107.00 to 107.20 resistance area, the bulls pushed the price higher impulsively and hit June 2020’s high. As per the current price action, USDJPY may face strong resistance around 109.20 to 109.40 area in the coming days.
Moreover, the U.S. Private company Administration (SBA) erroneously paid out $692 million in alike small-business pandemic alleviation credits in view of technical mistakes and different errors, the organization’s inward watchdog said on Monday. On the other hand, the Bank of Japan Governor Haruhiko Kuroda said today, it was essential to keep long-term interest rates “steadily less” as the economy is as yet experiencing the effect of the COVID-19 pandemic.
USDJPY Sustains the Bullish Trend as the Dollar Index Bulls Still Holding the Bias
USDJPY is currently residing near 109.20 area and trying to recover upside. However, the price has faced strong resistance at the Bollinger Bands’ upper band on the intraday chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY sustains the bullish trend and currently trading around 109.20 area. As per the current price action, if the price can have an impulsive bearish candle close below 109.20 to 109.40 area, the bears may regain momentum and decline towards 108.20 to 108.00 area in the coming days. Alternatively, if the price breaks above 109.20 to 109.40 resistance area with an impulsive bullish candle close, the bulls may sustain the bullish bias further towards 109.80 to 110.00 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price upside. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process. Therefore, the bears may regain momentum if the price can break below the dynamic level in the days ahead.
USDJPY May Revert Back to the Mean
According to the daily chart, USDJPY sustains the bullish trend as the bulls are optimistic. As per the current scenario, the price may recover higher towards 109.50 to 110.00 area in the process. So, if the price climbs towards 109.50 to 110.00 area and rejects with a daily bearish candle, the price may retrace towards 107.50 to 107.00 support area in the days ahead. So, if the price retraces towards 107.50 to 107.00 support level and bounced upside, the bulls may sustain the bullish bias towards 109.50 to 110.00 area as a first target. The second target will be 110.80 to 111.00 area if the price can break over 109.50 to 110.00 area in the coming days.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price down as a mean reversion. Along with this, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement before continuing the bullish trend further. An impulsive daily close will help to identify the certain momentum in the coming days.