USDJPY → The pair retreats from the cycle high
On the daily chart, we can see that the
USDJPY
pair shoot higher following the disappointing BoJ policy decision and came close to touch the cycle high around the 152.00 handle. The price since then started to roll over as Treasury yields continued to fall following weaker US data. We can also notice that the price continues to diverge with the MACD, which is a sign of weakening momentum often followed by pullbacks or reversals. If the price falls below the 150.00 level, we can expect the sellers to increase the bearish bets and target the major trendline around the 146.00 level.
On the 4 hour chart, we can see that the price yesterday bounced on the 150.00 level and pulled back into the support turned resistance around the 150.60 level. The price is now rolling off again as it keeps a bearish bias, but all eyes will be on the NFP report later today.
On the 1 hour chart, we can see that we now have two key levels to watch out for: the resistance zone around the 150.60 level and the support at the 150.00 level. A break above the resistance is likely to open the door for a new high with the buyers increasing the bullish bets. On the other hand, a break below the support should see more sellers piling in to extend the drop into the trendline first, and upon a breakdown, increase the bearish momentum into the 146.00 level.
Upcoming Events
Today, we conclude the week with the US NFP report and the ISM Services PMI. If the data misses expectations, we should see more downside for the USD as Treasury yields will likely fall further.
USDJPY
pair shoot higher following the disappointing BoJ policy decision and came close to touch the cycle high around the 152.00 handle. The price since then started to roll over as Treasury yields continued to fall following weaker US data. We can also notice that the price continues to diverge with the MACD, which is a sign of weakening momentum often followed by pullbacks or reversals. If the price falls below the 150.00 level, we can expect the sellers to increase the bearish bets and target the major trendline around the 146.00 level. On the 4 hour chart, we can see that the price yesterday bounced on the 150.00 level and pulled back into the support turned resistance around the 150.60 level. The price is now rolling off again as it keeps a bearish bias, but all eyes will be on the NFP report later today.
On the 1 hour chart, we can see that we now have two key levels to watch out for: the resistance zone around the 150.60 level and the support at the 150.00 level. A break above the resistance is likely to open the door for a new high with the buyers increasing the bullish bets. On the other hand, a break below the support should see more sellers piling in to extend the drop into the trendline first, and upon a breakdown, increase the bearish momentum into the 146.00 level.
Upcoming Events
Today, we conclude the week with the US NFP report and the ISM Services PMI. If the data misses expectations, we should see more downside for the USD as Treasury yields will likely fall further.