USD/JPY seems to be prepared to increase a longer-term downtrend after days of power!
Suppose USD/JPY might flip decrease within the subsequent buying and selling periods?
Right here’s the resistance space we’re watching on USD/JPY’s 4-hour chart!
USD/JPY 4-hour Foreign exchange Chart by TradingView
The U.S. greenback has been sliding in opposition to the Japanese yen all 12 months, weighed down by shaky U.S. financial knowledge, commerce battle dangers, rising Fed fee reduce expectations.
The yen, however, has been getting consideration amidst rising geopolitical and commerce tensions, hawkish BOJ expectations, and rising Japanese authorities bond yields.
Keep in mind that directional biases and volatility circumstances in market worth are usually pushed by fundamentals. For those who haven’t but achieved your homework on the U.S. greenback and the Japanese yen, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!
USD/JPY reversed from the 158.50 space earlier this 12 months and has been in a downtrend ever since. In the present day, the pair is testing key resistance after bouncing from its 146.60 lows.
A bearish candle has shaped close to the 149.00 psychological stage, lining up with the 100 SMA, the 61.8% Fibonacci retracement of the newest downswing, and a development line that’s been capping positive factors since February.
If sellers step in, a break beneath 148.00 might strengthen bearish momentum, probably dragging USD/JPY again towards 146.60 and even new 2025 lows.
However the bulls would possibly simply be catching their breath. A sustained push above the development line, 100 SMA, and 150.00 resistance might shift momentum larger, opening the door for a transfer towards 151.25 and even 154.00.
Whichever bias you find yourself buying and selling, don’t overlook to follow correct danger administration and keep conscious of top-tier catalysts that might affect total market sentiment!
