The USDJPY extended above its 200-day moving average and
the 50% midpoint of the 2025 trading range last week, signaling a bullish
breakout. However, that bullish momentum was abruptly reversed after the weaker-than-expected
U.S. jobs report, which triggered a sharp decline.
By the close, the pair had fallen below the 100-bar
moving average on the 4-hour chart, currently at 148.00 (blue line),
shifting the short-term technical bias in favor of sellers. The downside
momentum has continued, with the price extending to new session lows.
Adding to the bearish tone is the price action on the
hourly chart (see the chart below), where sellers leaned against the 200-hour
moving average, currently at 148.15 (green line). The failure to
break above this level on the rebound confirms it as near-term resistance. As
long as the price remains below both the 100-bar on the 4-hour and the
200-hour moving averages, the technical bias stays negative.
The Road Ahead:
- Immediate support: 200-bar MA on the 4-hour chart at 146.566
- Current session low: 146.90 — getting below it increases bearish control
- Next target zone: Swing area between 145.91 and 146.288
- Key support below: 100-day moving average at 145.698
- Note: The pair moved above that level on July 8 and has largely held above it since, aside from a brief dip on July 10
This confluence of failed resistance tests and layered
support zones gives traders clear technical markers to gauge momentum shifts in
the sessions ahead.
Stay tuned to InvestingLive.com for continuous insights and analyses.
This article was written by Greg Michalowski at investinglive.com.