USD/JPY Price Analysis: Struggles at 115.80 as market mood dampens, slides to 115.40s
|- Failure of USD/JPY buyers to print a daily close above 115.60 exacerbated a downward move towards 115.40s.
- USD/JPY Technical Outlook: Neutral-upward biased, but in the short-term downward as geopolitical headlines dominate market mood.
On Wednesday, the USD/JPY edges lower as the North American session progresses, as market sentiment fluctuates between risk-on/off. At the time of writing, the USD/JPY is trading at 115.48.
USD/JPY Price Forecast: Technical outlook
During the overnight session, for North American traders, the USD/JPY reached a daily high of 115.80. As risk-aversion increased, however, courtesy of US Secretary of State Blinken's remarks about continuing to see critical Russian units moving towards the border and not away, market players’ mood tilted the other way.
Overall the USD/JPY is upward biased, as depicted by the daily moving averages (DMAs) located well below the spot price. Tuesday’s failure to achieve a daily close above the January 28 daily high at 115.68, however, exacerbated a downward move, as shown by Wednesday’s price action, which tilted the bias for the pair lower in the near term.
USD/JPY's first support would be February 14 daily low at 115.00. A sustained break would expose the 50-DMA at 114.70, followed by the February 2 low at 114.14 and then the 100-DMA at 114.11.
Upwards, the USD/JPY's first resistance would be 116.00. Penetration of the latter would expose the YTD high at 116.35, followed by a challenge of a 24-month-old downslope trendline around 117.00. A clear break of that ceiling level would pave the way towards the January 2017 swing high at 118.61.
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