**USD/JPY Intraday Technical Analysis – June 5, 2024**
*Based on content by ActionForex*
The USD/JPY currency pair presents a mixed technical outlook in today’s mid-day report, holding beneath the recent resistance around 157.70, while showing signs of underlying bullish momentum. Despite the earlier pullback, the overall trend favors the US dollar on the backdrop of interest rate divergence and a broader risk-on sentiment in global markets. The intraday movement carries key implications for both short-term traders and position holders closely monitoring breakout levels and support zones.
This analysis elaborates on the current price action, technical indicators, and broader trend developments for the USD/JPY. This revised and expanded overview offers a comprehensive breakdown of potential scenarios and price levels to guide trading decisions.
■ Technical Summary
– USD/JPY remains capped below the minor resistance at 157.70.
– Support lies near 154.53, representing a minor range base.
– The pair is still trading within a continuation pattern after a notable uptrend.
– Technical momentum suggests upside potential is intact unless stronger bearish pressure develops.
– Near-term action reflects consolidation, possibly preparing for a directional breakout.
■ Price Action and Chart Patterns
The pair traded in a tight range during the European and Asian sessions today, echoing uncertainty and indecision ahead of major US data releases. The lack of strong movement so far keeps the near-term direction capped within a technical range.
– USD/JPY peaked at the recent swing high of 157.70 earlier this week, a level that now serves as immediate resistance.
– Today’s price action hovers slightly below that mark, testing upside momentum.
– On the downside, support is seen around 154.53, which aligns with previous lows during the consolidation period.
This horizontal price action can be viewed as part of a flag or continuation pattern typical after strong directional moves, suggesting that the prior uptrend may resume if resistance breaks.
■ Near-Term Bias
According to ActionForex analysis, the intraday bias for USD/JPY remains neutral as long as 157.70 holds. The short-term picture would shift bullish on a firm break of this level.
– A sustained move above 157.70 would validate a continuation of the prior uptrend from 140.25, the low posted in December 2023.
– After such a breakout, the pair could aim for the long-term Fibonacci level of 61.8% projection at 162.08, measuring from the move between 127.20 (January 2023 low) and 151.89 (October 2023 high), then extended from 140.25.
– Intraday bullish confirmation would come from a strong close above 157.70, along with support from volume and RSI divergence.
In contrast:
– A break below near-term support at 154.53 would turn attention to more meaningful retracement levels.
– A decisive drop through 154.53 could bring about further weakness, potentially targeting the 38.2% retracement of the rise from 140.25 to 157.70 at 151.21.
Until a clear breakout occurs, the pair is expected to stay in consolidation mode between these key boundaries.
■ Daily Chart Technicals
The daily chart shows the broader context in which USD/JPY is operating, featuring hallmark characteristics of a strong bullish trend.
– Price remains well above key daily moving averages: 20-day EMA (~155.90), 50-day EMA (~153.70), and 200-day EMA (~148.10).
– MACD on the daily chart maintains a slight bullish bias, signaling positive momentum despite consolidation.
– RSI continues to hover near overbought territory, suggesting traders are cautious about chasing highs without deeper corrections.
Despite the intraday neutrality, the underlying structure remains favorably bullish on the daily timeframe. The dips continue to attract buying interest so long as the price stays above significant support levels.
■ Longer-Term Perspective
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