You are here: Home > articles > Forex > Technical Analysis – USDJPY under descending line; bias neutral-to-bullish
Technical Analysis – USDJPY under descending line; bias neutral-to-bullish
May 2, 2019 7:26 amVideo
Latest News
- Energy in Focus: What news awaits investors on Wall Street April 15, 2024
- Forecast for EUR/USD on April 15, 2024 April 15, 2024
- Forecast for GBP/USD on April 15, 2024 April 15, 2024
- Forecast for USD/JPY on April 15, 2024 April 15, 2024
- Outlook for EUR/USD on April 15. The euro is already falling for no apparent reason! April 15, 2024
- Trading plan for GBP/USD on April 15. Simple tips for beginners April 15, 2024
- Trading plan for EUR/USD on April 15. Simple tips for beginners April 15, 2024
- Euro will return to parity April 12, 2024
- Trading Signals for ETH/USD (Ethereum) for April 12-15, 2024: buy above $3,435 (3/8 Murray – 200 EMA) April 12, 2024
- EUR/USD. Analysis for April 12th. The euro falls down under the pressure of the news background April 12, 2024
- GBP/USD. Analysis for April 12th. A significant event: the pound fell below the 25-figure April 12, 2024
- Trading Signals for EUR/USD for April 12-15, 2024: buy above 1.0620 (-2/8 Murray – rebound) April 12, 2024
- GBP/USD: trading plan for the US session on April 12th (analysis of morning deals). The pound followed the euro April 12, 2024
- EUR/USD: trading plan for the US session on April 12th (analysis of morning deals). The euro continues to fall April 12, 2024
- EUR/USD and GBP/USD: Technical analysis on April 12 April 12, 2024
- EUR/USD: Dovish signals from the ECB and rising PPI April 12, 2024
- EUR/USD. April 12th. ECB meeting: confidence in rate cut increased in June April 12, 2024
- GBP/USD. April 12th. British economy continues to stagnate April 12, 2024
- Analysis and trading tips for EUR/USD on April 12 (US session) April 12, 2024
- Analysis and trading tips for USD/JPY on April 12 (US session) April 12, 2024
USDJPY met heavy resistance from the soft descending line drawn from the 114.54 top last week, ending bullish action at a four-month high of 112.39. The pair is currently fluctuating around its 200-day simple moving average (SMA), with momentum indicators pointing to a neutral-to-bullish short-term trading; the red Tenkan-sen is flat slightly above the blue Kijun-sen, while the RSI is set to cross above its 50 neutral mark.
For a meaningful rally the bulls probably need to jump above the downtrend line seen around 112.30, where the 78.6% Fibonacci of the downleg from 114.54 to 104.64 is also placed. Higher, the next battle could develop between 113.70 and 114.20, key resistance levels during November and December.
In case the bears retake control, the price could initially rest near yesterday’s low of 111 before touching the 61.8% Fibonacci of 110.74. Beneath the latter, the decline may next pause between 110 and the 50% Fibonacci of 109.58, which if significantly broken would raise speculation over a trend reversal; such a move would violate the upward pattern started in January.
Meanwhile in the medium-term timeframe, USDJPY is still enjoying positive conditions thanks to the higher highs and higher lows registered since the start of the year.
In brief, USDJPY faces a neutral-to-positive bias in short term, while in the medium-term picture the outlook remains bullish.
Related Posts: