USDJPY has become volatile, but still holding the bullish bias over 106.00 to 106.10 support level. Will USDJPY bullish trend sustain towards 107.00 psychological key level? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/JPY Technical Analysis.
March 2, 2021, | AtoZ Markets – USDJPY is currently trading around 106.83 area and trying to recover higher. After bouncing from the dynamic level of 20 EMA, the bulls pushed the price upside quite impulsively and hit August 2020’s high. As per the current price action, USDJPY may face strong resistance around 106.90 to 107.00 key area in the coming days.
Moreover, on Monday, Senate Majority Leader Chuck Schumer said that the U.S. Senate would start discussing President Joe Biden’s $1.9 trillion Covid-19 alleviation bill current week. However, in notes on the Senate floor, Schumer, a Democrat, didn’t say when the chamber may decide on the bill. On the other hand, the Japanese administration and governing party authorities are examining conceivable extra money payouts to low-earning families to help them cope with the Covid-9 pandemic, two sources told Reuters on Monday.
USDJPY Bullish Trend May Sustain Further as the Bulls Are Optimistic
USDJPY is currently residing near 106.83 area and trying to push the price upward. After bouncing from 104.90 to 105.00 support area, the price strike higher and gain almost 200 pips.
Image: USDJPY 4 Hour Chart
According to the 4-hour chart, USDJPY is currently trading around 106.83 area and may sustain the bullish trend. As per the current price action, if the price pushes further upside towards 106.90 to 107.00 key resistance area and rejects with an impulsive bearish candle, the bears may regain momentum and decline towards 106.10 to 106.00 event level in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Along with this, the MACD lines are currently residing over the 0.00 level and may have a bearish crossover. Also, the histograms are gradually sloping downside. Both indicate that the bears may regain momentum in the coming days.
USDJPY May Revert Back to the Mean
According to the daily chart, USDJPY bullish trend may face strong resistance around 106.90 to 107.00 key level. As per the current scenario, if the price can have an impulsive daily bearish candle close after hitting 107.00 psychological level, the price decline towards 106.10 to 106.00 support level in the process. So, if the price pushed down towards 106.10 to 106.00 support level and bounced higher, the price may recover towards 106.90 to 107.00 area again in the days ahead. Alternatively, if the price breaks below 106.10 to 106.00 support level with a daily bearish candle, the bears may push the price down towards 105.00 to 104.90 area in the coming days.
Image: USDJPY Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement. A daily close will help to identify the definite momentum in the coming days.