Investors are still speculating that the Fed will ultimately start rolling back its massive pandemic-era stimulus later this year. This is due to a positive intraday move in US Treasury bond yields, which acted as a tailwind for the US dollar and limited any meaningful gains for the USD/JPY currency pair.
USD/JPY Price Forecast – Technical Levels
Daily Support and Resistance
Pivot Point 109.9
USD/JPY Price Forecast – Upward Trendline Set To Breakout At 109.700
The USD/JPY currency pair is trading with a strong bearish bias at the 109.637 level. The USD/JPY is likely to find immediate support at the 109.408 level on the bearish side. Furthermore, the breakout of the 109.408 level is expected to expose USD/JPY prices towards the next support level of 109.195.
On the 4 hour timeframe, the pair has formed a bearish engulfing candle which suggests robust selling bias in the USD/JPY pair. Alongside, the 50 Peters exponential moving average provides a strong resistance at the 110.050 level.
Currently, the pair is trading at the 109.617 level, which is also working as a triple bottom level for the currency pair. However, the breakout of the 19.617 level can expose a strong selling bias until 109.408 and 109.120. On the bullish side, the Japanese yen may find strong resistance at the 110.050 level. A bullish breakout of this particular level can extend another round of buying until the 110.170 level.
Additionally, the Japanese yen may find strong resistance at the 110.461 level upon the breakout of the 110.177 level. Finally, leading technical indicators such as the stochastic RSI are indicating a sell. Therefore, Forex trading participants are likely to go for sell trades below the 110.050 level today.