USD/JPY Price Analysis: The Yen Strengthens, As Bears Stepped In Around 128.60
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- The USD/JPY daily chart holds a bearish bias, though the pair appears unable to extend its losses beneath 128.00.
- The USD/JPY currency pair is trading sideways in the near-term, awaiting a break above or below the 129.00/128.00 range.
The USD/JPY currency pair has been failing to hold to its gains, and it has been seen trading beneath its opening price by around 0.33% after hitting a daily high of 128.88. As of the time of writing, the USD/JPY has been holding around the 128.40 level amidst a risk-off impulse and a soft US dollar.
USD/JPY Price Analysis: Technical Outlook
Failure to crack the 20-day Exponential Moving Average (EMA) at 131.13 exposed the USD/JPY to selling pressure. In addition, price action dived back below a three-month-old downslope resistance trendline, which falls in line with the USD/JPY's downtrend. Therefore, the path of least resistance is downwards, but a decisive break below the year-to-date low of 127.21 is needed, so the pair might get poised towards the May 24 daily low of 126.36.
Over the short-term, the USD/JPY four-hour chart suggests the pair as range-bound, although the Relative Strength Index (RSI) is at bearish territory. The Rate of Change (RoC) shows buyers gathering momentum. Hence, mixed signals surrounding the USD/JPY pair might stop traders from opening fresh positions unless a decisive break is achieved.
The USD/JPY key resistance levels are 129.00, the daily pivot at 129.33, and the 50-EMA at 129.60. On the other hand, the USD/JPY first support would be 128.00, followed by the Jan. 18 daily low of 127.55, ahead of 127.00.
USD/JPY Key Technical Levels
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