USDJPY Volatility Increased Below 109.00 Key Area – Bears to Regain Momentum?


USDJPY has become volatile and corrective after rejecting 109.00 to 109.30 key resistance area. USDJPY volatility increased below 109.00 psychological key level. Bears to regain momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis. 

March 23, 2021, | AtoZ Markets – USDJPY is currently trading around 108.72 area and trying to push downside. After breaking over 108.00 to 108.20 area, the bulls pushed the price upside quite impulsively, but failed to break above 109.00 to 109.30 area and had a weekly bearish indecision candle. As per the current price action, the price may face strong support around 108.35 to 108.45 area in the coming days.

Moreover, Federal Reserve chairman Jerome Powell said on Monday that the Federal Reserve would not continue with a national bank digital currency without Congressional endorsement, and flow research on the subject is centered around the dangers and advantages of not making a model. On the other hand, Bank of Japan Governor Haruhiko Kuroda said on Monday that the national bank would not quit purchasing exchange-traded assets (ETFs) or sell them as it attempts to make its facilitating instruments more adaptable and maintainable under its yield curb control strategy.

USDJPY Volatility Increased as the Price Requires a Downside Retracement

USDJPY is currently residing near 108.72 area and trying to decline further. However, the dynamic level of 20 EMA is holding the price as strong resistance on the intraday chart.

USDJPY Volatility Increased

Image: USDJPY 4 Hour Chart

According to the 4-hour chart, USDJPY volatility increased and currently trading around 108.72 area. As per the current price action, the bears may push the price down towards 108.45 to 108.35 support level in the process. So, if the price breaks below 108.45 to 108.35 support level with an impulsive bearish candle, the bears may push the price down towards 108.00 to 107.80 area in the days ahead. Alternatively, if the price bounced upside from 108.35 to 108.45 area, the bulls may recover higher towards 109.00 to 109.30 area again in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Besides, the Stochastic Oscillator lines are currently residing below the overbought level 80 and may have a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the coming days.

USDJPY May Revert Back to the Mean

According to the daily chart, USDJPY volatility increased, but the overall bias is still bullish. As per the current scenario, the price may retrace towards 108.00 to 107.80 support level in the coming days. So, if the price retraced towards 108.00 to 107.80 area and bounced upward with a daily bullish candle, the bulls may sustain the bullish trend towards 109.00 to 109.30 area as a first target. The second target will be 109.80 to 110.00 key area if the price can break above 109.00 to 109.30 area in the process.

USDJPY Volatility Increased

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. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that the bears may push the price further downside in the coming days.

To conclude, as long as the price residing over 107.80 to 108.00 support level, the bias will remain bullish. A daily impulsive close is needed to identify the definite momentum in the coming days.

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