USD/JPY Price Analysis: Sideways below 156.50 as US yields fall
21.05.2024, 20:22

USD/JPY Price Analysis: Sideways below 156.50 as US yields fall

  • USD/JPY faces resistance at 156.50 as 10-year Treasury yields decline.
  • Bullish technical outlook with waning momentum; RSI under 50 could signal potential losses.
  • Resistance levels lie at 156.76, 157.00, and YTD high of 160.32.
  • Key support emerges at 156.00, Senkou Span A (155.61), and Kijun-Sen (155.18).

The USD/JPY pair faces stir resistance at around 156.50 retreats as the US 10-year Treasury note yield drops three and a half basis points, a headwind for the Greenback. The positive correlation between the major and the US 10-year note yield weighed on the pair, down 0.06%, and trades at 156.19.

USD/JPY Price Analysis: Technical outlook

The USD/JPY remains upward biased, but buyers seem to have lost some momentum. They remain unable to bring the pair upwards and challenge the latest cycle high of 156.76, the May 14 high. The Relative Strength Index (RSI) suggests that buying pressure is fading. Despite standing in bullish territory, if the RSI punches below the 50-midline, that could pave the way for USD/JPY losses.

For a bullish continuation, the USD/JPY first resistance would be 156.76, followed by 157.00. Up next would be the May 1 high at 157.98, ahead of challenging the year-to-date (YTD) high of 160.32.

On the flip side, and the most likely path in the near term, if USD/JPY tumbles below 156.00, the first support would be the Senkou Span A at 155.61. Once cleared, the next stop would be the Kijun-Sen at 155.18 ahead of 155.00.

USD/JPY Price Action – Daily Chart

USD/JPY

Overview
Today last price 156.21
Today Daily Change -0.04
Today Daily Change % -0.03
Today daily open 156.25
 
Trends
Daily SMA20 155.49
Daily SMA50 153.26
Daily SMA100 150.66
Daily SMA200 149.08
 
Levels
Previous Daily High 156.31
Previous Daily Low 155.5
Previous Weekly High 156.79
Previous Weekly Low 153.6
Previous Monthly High 160.32
Previous Monthly Low 150.81
Daily Fibonacci 38.2% 156
Daily Fibonacci 61.8% 155.81
Daily Pivot Point S1 155.73
Daily Pivot Point S2 155.21
Daily Pivot Point S3 154.92
Daily Pivot Point R1 156.54
Daily Pivot Point R2 156.83
Daily Pivot Point R3 157.35

 

 

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