You are here: Home > articles > Forex > Technical Analysis – USDJPY shows recovery signs after sharp pullback
Technical Analysis – USDJPY shows recovery signs after sharp pullback
May 10, 2023 8:25 amVideo
Latest News
- Trading Signals for EUR/USD for April 24-26, 2024: buy above 1.0670 (21 SMA – 3/8 Murray) April 24, 2024
- Technical Analysis – Alphabet stock is buoyant ahead of earnings April 24, 2024
- Analysis of the EUR/USD pair on April 24th. Waiting for US GDP for the first quarter April 24, 2024
- Analysis of the GBP/USD pair on April 24, 2024 April 24, 2024
- USD/JPY: Simple trading tips for novice traders on April 24th (US session) April 24, 2024
- GBP/USD: Simple trading tips for novice traders on April 24th (US session) April 24, 2024
- Technical Analysis – EURUSD stays beneath 1.0700 April 24, 2024
- EUR/USD: Simple trading tips for novice traders on April 24th (US session) April 24, 2024
- GBP/USD: trading plan for the US session on April 24th (analysis of morning deals). The pound retains hope April 24, 2024
- EUR/USD: trading plan for the US session on April 24th (analysis of morning deals). The euro continues to buy around 1.0688 April 24, 2024
- Forecast for the EUR/USD pair on April 24, 2024 April 24, 2024
- GBP/USD. April 24th. The pound felt strong on Tuesday April 24, 2024
- Overview for the GBP/USD pair on April 24th. Dave Ramsden expects inflation to slow down April 24, 2024
- Technical Analysis – EURCHF heads up after bearish spike April 24, 2024
- Overview for the EUR/USD pair on April 24th. The EU services sector has pushed the euro upwards April 24, 2024
- Video market update for April 24, 2024 April 24, 2024
- Will the BoJ disappoint once again? – Preview April 24, 2024
- Forex forecast 04/24/2024: EUR/USD, USD/CAD, Oil and Bitcoin from Sebastian Seliga April 24, 2024
- USD/JPY: trading tips for beginners for European session on April 24 April 24, 2024
- GBP/USD: trading tips for beginners for European session on April 24 April 24, 2024
USDJPY has been trading within an upward sloping channel since mid-March, crossing above both its 50-day simple moving average (SMA) and the Ichimoku cloud. Even though the pair experienced a pullback after failing to extend its rally above the 200-day SMA, it has been steadily re-gaining ground in the last few daily sessions.
The momentum indicators currently suggest that bullish forces are in control. Specifically, the stochastic oscillator is ascending after posting a bullish cross, while the RSI is flatlining above its 50-neutral mark.
If buying pressures persist, initial resistance could be found at the 2023 high of 137.90. Surpassing that zone, the pair might ascend towards the July high of 139.38 before the November resistance of 142.24 comes under examination. Further advances could then cease at the 145.89 hurdle.
On the flipside, should the recent recovery fade, the price could reverse downwards to challenge the recent support of 135.51, which lies very close to the 50-day SMA. If that floor collapses, the bears may aim for 133.00 before attention shifts to the April bottom of 130.62. Failing to halt there, the March low of 129.63 could provide downside protection.
Overall, USDJPY seems to be rebounding after experiencing a moderate downside correction, with its ascending channel pattern remaining intact. However, a break above the double-top region of 137.90 is needed to turn the medium-term outlook back to bullish.
Related Posts: