USD/JPY Price Analysis: Snaps 10-day uptrend as bears approach 143.00
- USD/JPY holds lower ground near intraday bottom, defies bullish chart formation.
- Clear break of 50-HMA teases short-term sellers but 100-HMA, fortnight-old support line could test bears.
- Bulls can aim for fresh multi-year high on witnessing sustained trading beyond 144.15.
USD/JPY remains pressured around intraday low near 143.60 during Friday’s Asian session. In doing so, the yen pair prints the first daily loss in 11 days while extending the mid-week pullback from the 24-year high.
However, the sellers need validation from a sustained downside break of the support line of a four-day-old bullish pennant, around 143.50 by the press time, to retake control.
Given the quote’s sustained trading below 50-HMA and the recently downbeat RSI, not oversold, the pair is likely to witness short-term downside.
Even so, the 100-HMA and an upward sloping support line from August 26, respectively near 142.65 and 142.20, could challenge the USD/JPY bears before giving them the powers.
Alternatively, buyers may initially struggle to cross the 50-HMA resistance near 144.00 but major attention will be given to the confirmation of the bullish pennant, by crossing the 144.15 hurdle.
Following that, the recent multi-year high near 145.00 could act as an intermediate halt while approaching the tops marked during June and August of the year 1998, close to 146.80 and 147.70 in that order.
Overall, USD/JPY is likely to witness short-term pullback but the bullish trend remains intact.
USD/JPY: Hourly chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
