Nov 08, 2022
VOT Research Desk
During Tuesday’s Asian session, the USDJPY posts its first daily rise in three days, around 146.65.
This continues the previous day’s comeback from a support line of the two-week-old symmetrical triangle.
To entice USDJPY buyers, the recovery movements must cross the 21-day EMA, which is currently at 147.10 at press time. Nonetheless, the negative MACD indications pose a challenge to the upward movement.
However, the top line of the indicated triangle, close to 148.10, holds the key to the USDJPY bull’s welcome, while several barriers near 149.00 may serve as the last line of defense for bears.
If the USDJPY goes over 149.00, the psychological level of 150.00 and the most recent multi-year high above 151.95 will be in focus.
Meanwhile, the support line of the aforementioned triangle, which is now at 146.20, precedes the 50% Fibonacci retracement level of the pair’s gain from late September to October, which is about 146.15, to limit short-term USDJPY downside.
However, a confluence between the 50-day EMA and the 61.8% Fibonacci retracement line at 144.75-85 looks to be a difficult nut to crack for the pair bearish. Hence, USDJPY remains on the bear’s radar unless it falls below 149.00.
