Technical Analysis – USDJPY remains stuck in a tight range
May 27, 2024 12:27 pm
USDJPY trades sideways in the past few 4-hour sessions
After its failure to conquer the 157.00 psychological mark
Momentum indicators deteriorate but remain in bullish territories
USDJPY had been in a steady recovery since mid-May, posting a three-week high of 157.18 last week. However, the pair has been rangebound since then due to its persistent inability to extend its advance above the 157.00 psychological barrier.
Should bullish pressures persist, the pair could attempt to claim the 157.00 psychological level, which overlaps with the 61.8% Fibonacci retracement of the 160.20-151.84 downleg. Conquering this barricade, the bulls could aim at the 78.6% Fibo of 158.41. Failing to halt there, the pair might advance towards the 34-year high of 160.20.
Alternatively, if the tight range breaks to the downside, immediate support could be found at the 50.0% Fibo of 156.02, which lies very close to the 50-period simple moving average (SMA). A violation of that zone could pave the way for the 38.2% Fibo of 155.03. Even lower, the 23.6% Fibo of 153.81 could prevent further declines.
In brief, after a period of heightened volatility, USDJPY has been trading sideways a tad below the 157.00 mark. However, the pair’s repeated failure to conquer this region could spark a strong move to the downside
USDJPY trades sideways in the past few 4-hour sessions
After its failure to conquer the 157.00 psychological mark
Momentum indicators deteriorate but remain in bullish territories
USDJPY had been in a steady recovery since mid-May, posting a three-week high of 157.18 last week. However, the pair has been rangebound since then due to its persistent inability to extend its advance above the 157.00 psychological barrier.
Should bullish pressures persist, the pair could attempt to claim the 157.00 psychological level, which overlaps with the 61.8% Fibonacci retracement of the 160.20-151.84 downleg. Conquering this barricade, the bulls could aim at the 78.6% Fibo of 158.41. Failing to halt there, the pair might advance towards the 34-year high of 160.20.
Alternatively, if the tight range breaks to the downside, immediate support could be found at the 50.0% Fibo of 156.02, which lies very close to the 50-period simple moving average (SMA). A violation of that zone could pave the way for the 38.2% Fibo of 155.03. Even lower, the 23.6% Fibo of 153.81 could prevent further declines.
In brief, after a period of heightened volatility, USDJPY has been trading sideways a tad below the 157.00 mark. However, the pair’s repeated failure to conquer this region could spark a strong move to the downside
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