Sat, Jan 28, 2023 @ 17:09 GMT
HomeContributorsTechnical AnalysisUSDJPY Advances after the Rebound Off the 200-day SMA

USDJPY Advances after the Rebound Off the 200-day SMA

USDJPY recently bounced off the 200-day simple moving average (SMA) after the fall towards the three-and-half-month low of 133.55. The price is trying to create a bullish correction as in the short-term timeframe the bias is bearish.

Technically, the MACD is gaining some momentum above its trigger line in the negative region, while the RSI is sloping slightly upwards to confirm the recent upside movement. However, the 20- and 40-day SMAs are still moving down, approaching the current market price.

Should the price move up, the 20-day SMA at 138.75, which the bears were unable to break the last month, could provide immediate resistance. Moving higher, the focus will shift to the 143.45-145.00 area, which encapsulates the 50-day SMA.

In the alternative scenario, traders would eagerly be looking for a break lower, meeting the 200-day SMA at 135.00. If that’s the case, the rally could last until the 133.55 barrier, ahead of the 130.37-131.35 support zone, confirming the near-term bearish outlook.

Summarizing, USDJPY has been negative over the last one-and-a-half-months despite the latest upside movement. Any moves beneath the 200-day SMA may change the broader outlook to bearish as well.
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading