Midweek Technical Look – USDJPY, EURGBP, Oil
USDJPY shows some stress; still in an uptrend
USDJPY came under pressure early on Thursday, trimming Wednesday’s moderate gains and putting its two-month-old bullish channel at risk once again.
The technical signals are not providing clear direction, with the falling RSI maintaining a sideways trajectory above its 50 neutral mark and the stochastic oscillator pointing down despite posting a positive cross.
Perhaps a downside correction may not scare traders and could still be an opportunity to buy the dip unless the price slumps below the 153.00-153.55 area, breaking below the 20-day exponential moving average (EMA) and beneath a shorter-term bullish channel. If that proves to be the case, selling forces could intensify toward the 50-day EMA and the 50% Fibonacci mark of 150.75. Note that the 200-day EMA is also nearby at 150.25. Hence, if it gives way too, there is potential for a sharp decline to 148.11.
In the bullish scenario where the price advances above 155.40, it could head straight up to the resistance area of 157.00-157.70. Should the former barrier of 158.35 prove fragile as well, the rally could speed up to 159.35 taken from April-May 1990 and then push toward the channel’s upper band seen near 160.50.
Overall, the uptrend in USDJPY seems to have geared down, shifting to a lower bullish channel. While downside risks have not evaporated, only a decline below 153.00-153.55 could activate fresh selling orders.
Tariffs Ignite Safe-Haven Rally
Japanese yen halts gains as US trade negotiations return to the spotlight
ATFX Market Outlook 6th May 2025
USDJPY, GBPUSD, Oil
ATFX Market Outlook 5th May 2025
ATFX Market Outlook 2nd May 2025
Japanese Yen Edges Lower as Weak Data Dampens Confidence
