09:33, 22 February

USDJPY Daily Analysis

After forming a bullish harami candlestick pattern on 16 February, the USDJPY pair traded higher for the fourth consecutive session yesterday and closed at 107.78, following a high at 107.90. A signal line crossover from below by the daily MACD, along .with the stochastic heading upwards, hints the presence of bullish momentum in the pair. However, the 2H & 8H stochastic and RSI indicators are sharply moving downwards, indicating at likely negativity over intraday basis. Key technical support is seen at .the 107.01/00 level, followed by the 8H 20SMA (currently placed at 106.77/75) and the 106.40 level. A breach below the latter .might trigger bearish momentum in the pair. On the other hand, crucial resistance is aligned at the 107.73/75 level, followed by .the 4H upper Bollinger band (currently trading at 108.06/10) and the 108.38/40 level. A break above the latter might lead to .further strength in the pair.