**USD/JPY Technical Analysis: Pair Retests 100-Bar Moving Average on the 4-Hour Chart**
*Based on the article by Adam Button, originally published on InvestingLive.com*
The USD/JPY currency pair experienced a notable movement in recent sessions, pushing higher toward a critical technical threshold. The pair stretched to test the 100-bar moving average (MA) on the 4-hour chart, a key dynamic resistance level that has been influential in determining short-term market direction. This development follows a sequence of downward and corrective moves, highlighting the importance of ongoing monitoring for potential breakouts or reversals.
This technical analysis delves into recent price action, key support and resistance levels, and moving average dynamics to provide a deeper understanding of where the USD/JPY pair could head next.
### Overview of the Current USD/JPY Landscape
The dollar-yen pair has shown signs of stabilizing after retreating from multi-month highs. While sellers briefly took control to push the pair lower, current momentum illustrates a bullish attempt to reclaim higher technical grounds.
Noteworthy developments include:
– A recent higher move has brought the pair back to a significant technical point: the 100-bar MA on the 4-hour chart.
– Traders who gauge momentum using moving averages are watching for a possible close above the 100-bar MA, which could signal further upward progress.
– The price action reflects market indecision, as traders await confirmation on whether buyers can maintain control or cede ground to sellers again.
### Technical Breakdown of Recent Price Action
As of the latest assessment, the USD/JPY is undergoing a corrective bounce after a near-term pullback. Several technical indicators help provide context for the current price action:
– The pair had previously seen downside movement after peaking around 160.20, sparking a bearish retracement.
– The 100-bar moving average on the 4-hour chart is acting as a potential resistance level. This average has often influenced price direction in past months, making it a focal point once again.
– A recovery off recent lows allowed the pair to climb back into a zone where buyers and sellers are battling near this moving average.
### Moving Averages: What the 4-Hour Chart Reveals
Focusing on moving averages, particularly on the 4-hour timeframe, provides useful insight into short-term trend strength and potential reversals. The 100-bar MA is a pivotal tool for traders judging medium-term price behavior.
Key details regarding the moving averages include:
– The 100-bar MA on the 4-hour timeframe is currently near the 157.00 level.
– Price action tested this average from below. A strong breach and subsequent daily close above it could open the door toward a rebound continuation.
– The price found support above the 200-bar MA on the same chart, keeping the longer-term bullish trend intact for now.
In context, if the price fails to sustain above these moving averages, it could put bears back in control and lead to another leg lower.
### Resistance and Support Levels to Watch
As the currency pair approaches a key inflection point, it’s important to identify zones of high technical interest. Traders will be monitoring these areas for signs of breakout, rejection, or consolidation.
**Key resistance levels:**
– 100-bar moving average on the 4-hour chart: approximately 157.00
– Psychological barrier at 158.00
– Previous highs near 160.20
**Key support zones:**
– The 200-bar MA on the 4-hour chart serves as initial support, found around 156.20
– Swing low near 155.60
– Critical psychological level at 155.00, which aligns with previous demand zones
A break below the 155.00 level would signify growing bearish strength and could accelerate downside momentum.
### Japanese Yen Fundamentals vs. U.S. Dollar Strength
Aside from pure technical setups, the backdrop for the USD/JPY depends heavily on broader economic narratives and central bank
Explore this further here: USD/JPY trading.