The USD/JPY pair moved lower in the early Asian session but found support once again near the rising 100-bar moving average on the 4-hour chart, currently at 153.944. This level, which also held yesterday and prompted a bounce, remains a key technical support.
Staying above this moving average maintains a bullish bias, while a break below shifts the focus to the 61.8% retracement level at 153.397. Further downside targets include the 200-bar moving average on the 4-hour chart at 152.314 and the 200-day moving average at 151.941, with each level increasing the bearish bias if broken.
On the upside, a swing area near 155.21 serves as the next key resistance. A move above this level would strengthen the bullish case, opening the door to further targets such as the weekly high at 155.88, last week’s high at 156.72, and the 157.921 high from July 19. These levels mark progressive resistance points in a bullish scenario.
In summary, the pair’s near-term direction hinges on the 100-bar moving average, with a simple rule: staying above supports bullish momentum, while moving below shifts the focus to bearish targets.
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USDJPY Technical Analysis
The USDJPY currency pair began the Asian session with a decline, only to find support near its rising 100-bar moving average on the four-hour chart. This moving average is currently at 153.944.
Key Support and Resistance Levels:
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Support: 100-bar moving average on the four-hour chart at 153.944
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Resistance: Swing area high at 155.21
Trading Strategy:
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Stay above 153.944 for a more bullish outlook
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Move below 153.944 for a more bearish outlook
Upside Targets:
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High of the week at 155.88
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High from last week at 156.72
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High price since July 19 at 157.921
Downside Targets:
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Broken 61.8% level at 153.397
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200-bar moving average on the four-hour chart at 152.314
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200-day moving average at 151.941
A move below each of these levels would increase the bearish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source