USDJPY has become volatile and corrective after bouncing from 103.00 to 103.10 support area. USDJPY volatility increased above 103.00 area. Bears to continue further lower? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
December 22, 2020, | AtoZ Markets – USDJPY is currently trading around 103.40 area and trying to push upside. After bouncing from 103.00 to 103.10 support level, the bulls pushed the price upside quite impulsively, but failed to break over 103.80 to 103.90 resistance levels. As per the current price action, USDJPY may face strong support around 103.10 to 103.00 area again in the coming days.
Moreover, U.S. President Joe Biden got his first vaccine of the Coronavirus live on the TV yesterday in an attempt to raise faith in its efficiency instead of its extensive delivery next year. Biden said that when he will enter office on Jan. 20, he will make the war against the COVID-19, which has killed more than 315,000 Americans and infected over 17.5 million. He is in the high-risk category for extremely contagious respiratory infections at 78 years of age.
On the other hand, an unprecedented $1.03 trillion budget proposal for the next financial cycle beginning in April 2021 was approved by Japan’s cabinet on Monday, the finance ministry said, as COVID-19 and fiscal stimulus put the pressure on already desperate public finances.
USDJPY Volatility Increased as the Coronavirus Cases Rising Rapidly Around the World
USDJPY is currently residing near 103.40 area and trying to recover higher. However, the bears are still holding the bearish bias below the dynamic level of 20 EMA on the daily chart.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY volatility increased and currently trading around 103.40 area. As per the current scenario, if the price pushes further upward and rejects 103.60 to 103.55 intraday resistance level with an impulsive bearish candle close, the bears may regain momentum and decline towards 103.10 to 103.00 area again in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price. It may work as strong resistance to push the price downside in the process. Also, the MACD lines are currently residing below the 0.00 level. It indicates that the bears are still in the market may push the price further downside.
USDJPY May Continue the Bearish Trend
According to the daily chart, USDJPY volatility increased, but the bears are still optimistic. As per the current price action, if the price retraces 50% of the recent daily bearish pin bar and rejects 103.60 to 103.55 area with a daily candle close, the bears may push the price downward towards 103.10 to 103.00 area as a first target. The second target will be 102.20 to 102.00 area if the price can break below 103.10 to 103.00 area in the days ahead.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which has worked as strong resistance and pushed the price downside. Besides, the Stochastic Oscillator lines are currently residing above the oversold level 20 and gradually sloping down. It indicates that bears may continue the bearish trend further in the process.
To conclude, as long as the price residing below 103.90 to 103.80 resistance level, the bias will remain bearish. A daily close is required to identify the definite momentum in the coming days.