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​Technical Analysis: USDJPY struggles to justify Fed/BOJ actions below 200-day SMA

While the Fed's surprise rate cut and the QE dragged the USDJPY back to 10-day SMA, BOJ's inaction, except for increasing the ETF buying, failed to fetch the quote further down. That said, the USDJPY pair struggles between the 200-day SMA and 10-day SMA while the five-month-old support-turned-resistance line adds to the upside barrier. However, recovering RSI favors the buys and hence any upside beyond 200-day SMA level of 108.25, backed by a clear break of the said trend line, at 108.45 now, can challenge 109.50 and 110.00 numbers to the north.

Though, the present risk-off sentiment exerts downside pressure on the pair, which in turn can recall 104.50/40 support-zone on the break of 10-day SMA, currently around 105.70. In a case where the prices keep trading southward past-104.40, 102.20 and 101.10 will be important as a break of which can shift the bears to 100.00 psychological magnet.

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