USDJPY rebounds from key help zone and eyes subsequent resistance goal

The USDJPY prolonged decrease immediately, breaking beneath a crucial swing space between 140.248 and 140.80, however rapidly rebounded after testing key technical help.

Yesterday’s low stalled proper on the 61.eight% Fibonacci retracement of the transfer up from the July 2023 low to the February 2024 excessive, coming in at 140.483. The value motion immediately confirmed the significance of that retracement stage, as consumers have stepped in as soon as once more on the transfer again above the extent, lifting the pair again above the swing space excessive at 140.80. The excessive simply reached 140.913. Consumers are making a play.

This marks at the least the fifth check of this swing space help zone (see purple numbered circles), with consumers persistently defending the realm during the last a number of months. The repeated bounce underscores its significance from a technical perspective and staying above immediately, might be bullish play – at the least within the brief time period.

With the rebound gaining momentum, the subsequent upside goal comes on the daiy chart, is available in on the 141.67 stage, which aligns with a previous swing excessive and intermediate resistance on the each day chart.

To maintain the bullish bias intact, consumers will wish to see value keep above 140.24-140.80. A transfer beneath that space would weaken the rebound narrative and shift the short-term bias again to impartial or bearish.

This text was written by Emma Wang at www.ubaidahsan.com.



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