USD/JPY Price Analysis: Treads water inside 40-pip trading range near 149.00
|- USD/JPY remains indecisive after a volatile start to the week.
- Immediate resistance line joins previous support from late September to restrict nearby moves.
- Sustained trading above the key SMAs, the receding bearish bias of MACD keeps buyers hopeful.
USD/JPY holds onto the day-start inaction around 149.00 as European traders brace for Tuesday’s work. In doing so, the yen pair remains inside a 40-pip trading area established after a rollercoaster start to the week.
That said, the support-turned-resistance line from September 22, around 149.00 by the press time, restricts the yen pair’s immediate downside. Alternatively, a descending trend line joining the quote’s retreat from early Monday’s peak, near 148.60, acts as the adjacent resistance.
It’s worth noting that the USD/JPY remains well above the key moving averages and has been getting less bearish signals from the MACD of late, which in turn suggests the quote’s run-up towards the 150.00 threshold.
Following that, the recently flashed 32-year high near 152.00 and June 1990 peak surrounding 155.80 will be in focus.
Alternatively, a downside break of 148.60 could drag the USD/JPY prices toward the 100-SMA and 200-SMA, respectively near 147.00 and 145.30.
If the quote drops below 145.30, the 61.8% Fibonacci retracement level of the pair’s run-up between September 22 and October 21, close to 144.80, could act as the last defense of the bulls.
Overall, USD/JPY remains on the buyer’s radar but the short-term moves appear less impressive.
USD/JPY: Four-hour chart
Trend: Further recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.