Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

USD/JPY Unable to Break Below 200-Day SMA

Published 12/14/2022, 04:37 AM
Updated 02/07/2024, 09:30 AM

USDJPY has been in a prolonged uptrend for almost two years, crossing above its historical resistance levels to post a 32-year high of 151.94 in October. However, the pair has declined moderately from its recent multi-year peak, with the 200-day simple moving average (SMA) currently acting as a strong floor.

The momentum indicators currently suggest that bearish forces are in control. Specifically, the RSI is hovering below its 50-neutral mark, while the stochastic oscillator is descending after posting a bearish cross.

If sellers eventually manage to push the price below the 200-day SMA, initial support could be found at the recent low of 133.62. Piercing through that wall, the bears might aim for the August low of 130.40. Failing to halt there, the May bottom of 126.40 could provide further downside protection.

To the upside, should buying forces intensify, the pair could challenge the recent resistance region of 137.96. Breaking above that zone, the price could then ascend to test 142.24 before the September peak of 145.89 comes under examination. An upside violation of the latter may set the stage for the 32-year high of 151.94.

In brief, despite the persistent downside pressures, it seems that USDJPY is unable to breach the crucial 200-day SMA. Hence, if the pair extends its streak of consecutive failed attempts, there could be an upside correction on the cards.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.