Title: USD/JPY Daily Outlook – Market Analysis as of June 5, 2024
Source: ActionForex.com | Original Author: ActionForex Analysts
Link to Original Article: https://www.actionforex.com/technical-outlook/usdjpy-outlook/603794-usd-jpy-daily-outlook-2179/
Overview
The USD/JPY pair is currently experiencing minor movements, with a consolidation of recent losses being observed. Despite the lack of strong directional bias in the short term, technical indicators and patterns continue to suggest the possibility of a deeper correction. The broader outlook, however, still remains bullish, with pullbacks expected to be temporary within the overall uptrend structure.
Short-Term Price Action
– The pair has shown limited momentum, hovering slightly above the 154.53 short-term support level.
– Market participants are closely watching to see if 154.53 will hold or give way to further downside pressure.
– While the upside remains capped near 157.70, any developments toward that resistance zone need to be monitored for confirmation of continuation.
Technical Analysis
– As of latest assessments, the intraday bias remains neutral as prices are consolidating the fall from the recent high of 157.70.
– A decisive break below 154.53 would strengthen the case for a deeper short-term correction.
– However, unless support at 151.86 is decisively broken, the medium-term bias remains tilted towards the upside.
Indicators Suggest Consolidation
– Moving averages:
– The 20-day moving average currently tracks below the current price, suggesting medium-term bullishness.
– The 50-day and 100-day moving averages are also rising, further indicating underlying structural strength.
– Relative Strength Index (RSI):
– RSI remains neutral, suggesting that current conditions offer neither overbought nor oversold scenarios.
– Traders will look for divergence or a break of key RSI levels as signals of momentum shift.
Key Support and Resistance Levels
– Resistance:
– Immediate resistance is near 156.50, which represents a minor intraday hurdle.
– Key level to watch remains at 157.70 – the recent multi-week high. A break above this level could reinforce the bullish outlook and prompt renewed buying interest.
– Support:
– Initial support lies at 154.53. A break below this level opens up potential for deeper correction.
– Strong and more critical support is at 151.86, which is aligned with previous consolidation zones.
– A breach below 151.86 would significantly weaken the positioning of bulls in the medium-term framework.
Medium-to-Long Term Outlook
– The broader trend remains firmly bullish as long as 151.86 support holds.
– The pair has been making regular higher highs and higher lows in recent months, a classic sign of an uptrend continuation.
– The current pause could be seen as a temporary correction before the next upward leg resumes.
– Upside targets in the
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