The USD/JPY edges lower but trims some of its earlier losses, down 0.20% in the aftermath of the US midterm election results. However, the pair seems to form a tilted bullish ‘pin bar ’, yet it remains consolidated within the 50- and 200-day SMAs, each at 157.39 and 158.62. At the time of writing, the pair trades at 158.41.
USD/JPY Price Forecast: Technical outlook
The USD/JPY remains subdued, with no clear bias. The market structure of lower highs and lower lows remains intact, but if buyers reclaim 159.00, a move to the 100-day SMA at 159.16 is on the cards, with buyers eyeing a test of 160.00.
From a momentum standpoint, that move seems remote. The Relative Strength Index (RSI), although bullish, is aiming downwards. Still, if USD/JPY clears 160.00, buyers could negate the bearish market structure on a breakout of the September 2 high of 160.39.
On the other hand, for a bearish continuation, sellers must drag the USD/JPY below 158.00 and clear the 50-day SMA at 157.39. A breach of the latter will expose 157.00, with sellers setting their sights on the October 23 low of the day (LOD) at 156.08.
USD/JPY Price Chart – Daily
USD/JPY daily chart
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