Technical Analysis – USDJPY shows signs of cooling
September 8, 2023 12:25 pm
USDJPY charted a bearish double top formation around the 147.75 bar and near ten-month highs before tumbling to 146.57 earlier today.
Encouragingly, the 50-period simple moving average (SMA) kept selling pressure in control, helping the price to climb back into the 147.00 area. The RSI stayed within the positive area and the stochastic oscillator drifted northwards in the aftermath, feeding optimism that buying interest might resurface.
The pair, however, is not out of risk yet. The 20-period SMA has been a hurdle at 147.40 over the past few hours, while buyers would also like to see a sustainable rally above the 147.70 ceiling before they lift the pair into the 149.00-149.55 area. This is where the resistance line from March 2023 is placed. A close above that border and higher than the 150.00 psychological level could last till the short-term ascending line from July at 150.45.
Alternatively, the price may revisit the 50-period SMA at 146.60. If buyers don’t show up this time, the decline could extend towards the tentative support trendline from July at 145.65. A break lower could meet the 200-period SMA at 144.58, while the 143.80 zone might be interesting to watch as well.
In summary, the uptrend in USDJPY is showing some cracks, but the bulls may not give up the battle yet. Traders may wait for a close above 147.70 or below 146.60 to direct the market accordingly.
USDJPY charted a bearish double top formation around the 147.75 bar and near ten-month highs before tumbling to 146.57 earlier today.
Encouragingly, the 50-period simple moving average (SMA) kept selling pressure in control, helping the price to climb back into the 147.00 area. The RSI stayed within the positive area and the stochastic oscillator drifted northwards in the aftermath, feeding optimism that buying interest might resurface.
The pair, however, is not out of risk yet. The 20-period SMA has been a hurdle at 147.40 over the past few hours, while buyers would also like to see a sustainable rally above the 147.70 ceiling before they lift the pair into the 149.00-149.55 area. This is where the resistance line from March 2023 is placed. A close above that border and higher than the 150.00 psychological level could last till the short-term ascending line from July at 150.45.
Alternatively, the price may revisit the 50-period SMA at 146.60. If buyers don’t show up this time, the decline could extend towards the tentative support trendline from July at 145.65. A break lower could meet the 200-period SMA at 144.58, while the 143.80 zone might be interesting to watch as well.
In summary, the uptrend in USDJPY is showing some cracks, but the bulls may not give up the battle yet. Traders may wait for a close above 147.70 or below 146.60 to direct the market accordingly.
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