The USDJPY pair experienced a downturn, signaling a shift towards a bearish momentum in today’s trading session. Despite this decline, the currency pair found some support at a critical swing area near 149.70, which prevented further losses and led to a modest bounce. This level has proven to be a pivotal point for the pair, offering a foundation for potential recovery or further decline.
For traders looking ahead to the next trading day, breaking below the 149.70 threshold and maintaining a position beneath this level would be crucial to solidify the bearish bias. Should the pair accomplish this, attention will then turn towards the rising 200-bar moving average on the four-hour chart, which is located at 149.11. This average is not only a technical indicator but also coincides with the low price from the previous week, making it a significant target for bears. Furthermore, a breach below this level could expose the pair to the 38.2% Fibonacci retracement of the uptrend from the February 1 low, found at 148.966, marking another critical juncture for the pair.
Conversely, for the pair to reverse its fortunes and adopt a bullish trajectory, a move above the 100-bar moving average on the four-hour chart, currently at 150.2512, would be necessary. Climbing above this moving average could signal a shift in momentum, potentially leading traders to explore the resistance area near 150.87 as the next target. This scenario would suggest a resurgence of buying interest, possibly changing the market’s direction.
In conclusion, the USDJPY’s future movements hinge on its ability to breach these key technical levels. Whether the pair extends its decline or rebounds hinges on its interaction with these critical support and resistance zones.
For a more detailed exploration of the USDJPY’s technical landscape and potential future direction, viewing the short video provided offers valuable insights and analysis.
This article was written by Greg Michalowski at www.forexlive.com. Source