USD/JPY extended losses on Friday, driven by rather strong bearish momentum mid-session. It pushed the rate past the 55-, 100– and 200-hour SMAs down to the senior channel near 111.00.
This line is supported by the 200-period SMA on the 4H chart. Thus, it is likely that the given cluster allows the rate to accelerate and aim for the upper boundary of a junior channel circa 111.60 today. The 55– and 100-hour SMAs are also located there. A breakout from this level would pave the way for a test of 113.00 this week.
By and large, the pair is likely not to show big leaps today and consequently remain stranded in between the senior channel and the aforementioned hourly SMAs.
This line is supported by the 200-period SMA on the 4H chart. Thus, it is likely that the given cluster allows the rate to accelerate and aim for the upper boundary of a junior channel circa 111.60 today. The 55– and 100-hour SMAs are also located there. A breakout from this level would pave the way for a test of 113.00 this week.
By and large, the pair is likely not to show big leaps today and consequently remain stranded in between the senior channel and the aforementioned hourly SMAs.
Comment:
Following a test of the 200– and 100-hour SMAs and the weekly PP at 111.40 early on Wednesday, the US Dollar began a new decline down to the 110.75 mark. This pushed the rate below the bottom boundary of the senior wedge.
Short-term technical indicators are located in the oversold territory. Thus, it is likely that Dollar bulls try to use this opportunity and push the pair higher. It does face the aforementioned resistance cluster that should hinder or even halt any moves above this 111.40 level. In case weak fundamentals put bearish pressure on the rate, the US Dollar should not fall below 111.60.
In general, the expected trading range for today is 110.60/111.40.
Following a test of the 200– and 100-hour SMAs and the weekly PP at 111.40 early on Wednesday, the US Dollar began a new decline down to the 110.75 mark. This pushed the rate below the bottom boundary of the senior wedge.
Short-term technical indicators are located in the oversold territory. Thus, it is likely that Dollar bulls try to use this opportunity and push the pair higher. It does face the aforementioned resistance cluster that should hinder or even halt any moves above this 111.40 level. In case weak fundamentals put bearish pressure on the rate, the US Dollar should not fall below 111.60.
In general, the expected trading range for today is 110.60/111.40.
Comment:
USD/JPY has been consolidating for the second consecutive day, as neither bulls nor bears have been able to leave the current range. Support was provided by the 110.80 mark, while the 55– and 100-hour SMAs still remain an unbreakable resistance level for the pair.
If looking at the most junior channel, the US Dollar has diminished its trading range within this pattern. This suggests that the rate could soon follow the gradually-recovering technical indicators. However, 111.40 still remains a very strong resistance area, as the 55-, 100– and 200-period SMAs on both the 1H and 4H time-frames are located there.
It is unlikely that bulls gather the necessary strength to dash through the given barrier today. Bearish gains should be capped near the monthly S1 at 110.37.
USD/JPY has been consolidating for the second consecutive day, as neither bulls nor bears have been able to leave the current range. Support was provided by the 110.80 mark, while the 55– and 100-hour SMAs still remain an unbreakable resistance level for the pair.
If looking at the most junior channel, the US Dollar has diminished its trading range within this pattern. This suggests that the rate could soon follow the gradually-recovering technical indicators. However, 111.40 still remains a very strong resistance area, as the 55-, 100– and 200-period SMAs on both the 1H and 4H time-frames are located there.
It is unlikely that bulls gather the necessary strength to dash through the given barrier today. Bearish gains should be capped near the monthly S1 at 110.37.
Monday’s trading session has not introduced any changes to USD/JPY’s positioning which was mainly due to the 55–hour and 200-period (4H) SMAs surrounding the rate. As a result, the expected test of the upper boundary of the junior channel did not occur.
It is likely that the 200-period SMA proves to be stronger than its 55-hour counterpart, thus putting more weighting on the bullish scenario. The 55– and 100-hour SMAs and the weekly PP must be surpassed for the Greenback to fully accelerate towards the monthly PP at 111.80.
In case the 200-period SMA is stronger, the pair is likely to aim for the psychological 111.00 level and later for the weekly S1 at 110.60.