12:42, 07 March
USDJPY Daily Analysis
The USDJPY pair traded lower yesterday and the closed at 106.13, after notching a low at 105.85. Formation of a bearish engulfing candlestick pattern on the 4H chart along with a possible signal line crossover from above by the 4H MACD reflects at a weak outlook in the coming session. Moreover, the stochastic and RSI oscillators on the hourly charts are grinding lower along with the daily momentum oscillators are tranquil at a lower level below their centerlines, further affirms the above view. Immediate support is aligned at the 105.30 level, followed by the daily lower Bollinger band (currently placed at 105.00) and the 104.62/60 level. A move back below the latter might trigger a further acceleration to the downside. On the other hand, key resistance is placed at the 105.88/90 level. A sustained break above the latter might lead to positivity in the air, paving the way for the 8H 20SMA (currently trading at 106.29/30) and the 106.64/65 level as next upside targets.