Market news
20.04.2022, 13:20

USD/JPY Price Analysis: Bounces off daily low, finds some support near 23.6% Fibo. level

  • USD/JPY stalled its intraday corrective pullback from the 20-year peak near the 23.6% Fibo. level.
  • The Fed-BoJ policy divergence favours bullish traders and supports prospects for additional gains.
  • A convincing break below the 126.35 confluence support is needed to confirm a near-term top.

The USD/JPY pair trimmed a part of its heavy intraday losses and was seen trading near the 128.00 mark during the early North American session, still down around 0.70% for the day.

The sharp intraday corrective pullback from a fresh 20-year high touched earlier this Wednesday found some support near the 23.6% Fibonacci retracement level of the 121.28-129.41 parabolic rise. The mentioned support, around the 127.50-127.45 region should now act as a pivotal point for short-term traders.

A convincing break below should pave the way for further losses and drag the USD/JPY pair towards the 127.00 mark. This is closely followed by support near the 126.80 region, or an ascending trend-line extending from the monthly low, below which spot prices could accelerate the slide towards the 126.35 confluence.

The latter comprises the 38.2% Fibo. level and the 50-period SMA on the 4-hour chart. Against the backdrop of a big divergence in the monetary policy stance adopted by the Fed and the Bank of Japan, the fall towards the said support could be seen as a buying opportunity. This should help limit losses for the USD/JPY pair.

On the flip side, the 128.45-128.50 region now seems to act as an immediate resistance ahead of the 1.2880 zone. A subsequent move beyond the 129.00 mark will suggest that the corrective pullback has run its course and lift the USD/JPY pair back towards retesting the two-decade peak, around the 129.40 region.

USD/JPY 4-hour chart

fxsoriginal

Key levels to watch

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location