USDJPY Technical Analysis: The USD/JPY pair closed with the GBP/JPY trading at $146.84, with prices positioned above most of the key moving averages on the chart. This suggests a generally bullish sentiment in the market, though there are some signs of a weakening trend. The MACD indicator points to a potential, albeit weak, downtrend, hinting that there could be short-term bearish movements.
Given the current market dynamics, a sell trade could be considered in the early part of the trading week, specifically during the Asian session. If prices decline to $146.46, this would present an opportunity to enter a short position, with the aim of targeting a move down to $146.03. This would align with the ongoing market conditions, where a temporary pullback is plausible despite the prevailing bullish trend.
For risk management, it’s essential to place a stop-loss order around the $147.45 level. This level is chosen as it provides enough room for price fluctuations while still offering a clear risk control mechanism. If the market reverses and prices reach this stop-loss point, the position would be closed to prevent further losses.
Overall, while the longer-term outlook may remain bullish due to the price being above key moving averages, a short-term bearish movement could offer a profitable trade within the $146.46 to $146.03 range. The stop-loss at $147.45 ensures a level of protection should the market unexpectedly move against the trade. Traders should monitor the pair closely for any changes in momentum or market sentiment during the Asian session for optimal entry.
USDJPY Technical Analysis: On the other hand,
if the buy zone at $147.45 is broken, the USD/JPY price may head towards $147.75.
USDJPY Technical Analysis: Resistance and Support Levels
- Second Resistance: 147.55
- First Resistance: 147.20
- Pivot Level: 146.94
- First Support: 146.59
- Second Support: 146.33
