USD/JPY Price Analysis: Range play intact within a potential symmetrical triangle

USD/JPY benefits from broad dollar strength.
Range trade holds amid mixed cues on the technical set up.
100-bar SMA is the level to beat for the bulls.

Dhwani Mehta FXStreet

USD/JPY is trying hard to break higher from the downside consolidation phase following a dip 107.20 levels in the US last session.

After a volatile session, the bulls are fighting back control in early Asia, mainly benefiting from broad-based US dollar strength, as impressive US Retail Sales data and worrisome coronavirus stats from the US continue to underpin the haven demand for the buck.

However, the negative tone in the S&P 500 futures could emerge a drag on the pair, going forward. The technical set up on the 15-minutes chart also paints a mixed picture for the spot in the immediate term.

The spot extends range play while traversing withing a potential symmetrical triangle pattern on the said timeframe and on a pattern confirmation could likely test the pattern target of 107.58.

The 107.37/38 resistance zone, however, remains a tough nut to crack for the USD/JPY buyers, where the falling trendline resistance and horizontal 100-bar Simple Moving Average (SMA) coincide.

The immediate downside is capped by the confluence of the 200 and 50-bar SMAs around 107.34. A break below which would expose the horizontal 21-bar SMA at 107.31.

A sustained breach of the rising trendline support at 107.21 could confirm the triangle breakdown and put the 107 level at risk.

Note that Relative Strength Index (RSI) has turned south and looks to test the midline at 50, indicating some near-term weakness.

All in all, a range bounce price action is expected, heading into the Tokyo open, with the sentiment on the Asian equities, USD dynamics and Japanese trade balance closely watched for a decisive break in either direction over the coming hours.

USD/JPY: 15-minutes chart

USD/JPY additional levels

USD/JPY

Overview
Today last price	107.35
Today Daily Change	0.02
Today Daily Change %	0.02
Today daily open	107.34

Trends
Daily SMA20	107.89
Daily SMA50	107.58
Daily SMA100	108.18
Daily SMA200	108.45

Levels
Previous Daily High	107.57
Previous Daily Low	107
Previous Weekly High	109.69
Previous Weekly Low	106.57
Previous Monthly High	108.09
Previous Monthly Low	105.99
Daily Fibonacci 38.2%	107.22
Daily Fibonacci 61.8%	107.35
Daily Pivot Point S1	107.03
Daily Pivot Point S2	106.73
Daily Pivot Point S3	106.46
Daily Pivot Point R1	107.61
Daily Pivot Point R2	107.87
Daily Pivot Point R3	108.18

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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