Article: USD/JPY Daily Technical Analysis and Outlook
(Source: ActionForex.com, original author: ActionForex Team)
Overview
The USD/JPY currency pair shows signs of continued consolidation. While the overall uptrend remains intact, exhausted bullish momentum has kept aggressive upside attempts in check. The pair struggles to maintain traction above recent resistance zones and now drifts into a potential pause or mild pullback phase. However, broader indicators continue to support bullish outlooks unless definitive bearish signals emerge.
Key Developments
– USD/JPY remains confined within a narrow consolidation range after multiple failed attempts to sustain a break above 157.00.
– Despite the corrective tone, underlying strength remains evident.
– The general macro environment favors the US dollar, further shoring up the potential for additional upside in the medium term.
– Bearish correction risks remain limited unless key support areas are breached.
Intraday Price Action Analysis
– The pair traded quietly during the latest session, oscillating below 157.00.
– Bullish attempts made during the early European and US trading sessions met persistent resistance near 156.90–157.10, indicating exhaustion at the top.
– The session’s low hovered near 156.30, an intraday support zone, and buying interest returned near that level.
– Current price action favors consolidation within the short term, lacking momentum to decisively push in either direction.
Technical Indicators
Relative Strength Index (RSI):
– The 4-hour RSI hovers around the 50 mark, signaling neutral momentum.
– Despite recent pullbacks, no oversold signals have emerged, supporting the prospect that the pair could resume its uptrend once consolidation completes.
Moving Averages:
– The 20-period EMA on the 4-hour chart provides immediate dynamic support at 156.20.
– The 55-period EMA lies further below near 155.60, offering a more significant cushion for any deeper correction.
– On the daily chart, the 20 EMA continues to trend upward sharply, confirming the bullish setup.
MACD (Moving Average Convergence Divergence):
– The MACD line has crossed below the signal line on the 4-hour chart, backing up the consolidation phase.
– However, there is no diverging pattern with price action, which typically confirms larger reversal threats.
Fibonacci Levels:
– Retracement levels drawn from the recent swing low at 151.86 to the high of 157.17 show key support at:
– 23.6% retracement – 155.90
– 38.2% retracement – 154.90
– 50.0% retracement – 154.00
Explore this further here: USD/JPY trading.