Technical Analysis – USDJPY plummets after 34-year high of 160.20
April 29, 2024 11:27 am
USDJPY loses significant ground
SMAs act as support lines
Stochastics and RSI have strong negative momentum
USDJPY is dropping sharply after climbing towards a fresh 34-year high at 160.20 earlier today. The market is slipping beneath the 20-period simple moving average (SMA), losing more than 400 pips.
Technically, the RSI is sliding below the neutral threshold of 50 and the stochastic oscillator is diving towards the oversold territory, both with strong negative momentum.
Any additional declines could remain attractive to traders with the first support coming from the 50-period SMA at 155.15 ahead of the 154.95. Then, they will fight for a breakout of the 154.50 bar and the 153.60 hurdle.
Should the bulls return, they will first push for a close above the 20-period SMA at 156.00. If efforts prove successful, the pair may advance towards the 158.40 resistance level but also the market needs to overcome the psychological numbers of 157.00 and 158.00.
In brief, USDJPY is heading for negative correction, but as long as it trades within a bullish formation and remains above the 200-period SMA the bullish scenario is still in play.
USDJPY loses significant ground
SMAs act as support lines
Stochastics and RSI have strong negative momentum
USDJPY is dropping sharply after climbing towards a fresh 34-year high at 160.20 earlier today. The market is slipping beneath the 20-period simple moving average (SMA), losing more than 400 pips.
Technically, the RSI is sliding below the neutral threshold of 50 and the stochastic oscillator is diving towards the oversold territory, both with strong negative momentum.
Any additional declines could remain attractive to traders with the first support coming from the 50-period SMA at 155.15 ahead of the 154.95. Then, they will fight for a breakout of the 154.50 bar and the 153.60 hurdle.
Should the bulls return, they will first push for a close above the 20-period SMA at 156.00. If efforts prove successful, the pair may advance towards the 158.40 resistance level but also the market needs to overcome the psychological numbers of 157.00 and 158.00.
In brief, USDJPY is heading for negative correction, but as long as it trades within a bullish formation and remains above the 200-period SMA the bullish scenario is still in play.
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