JPY to be watched closely 4/10/2023

The USD/JPY pair achieved the first official target of the current upward wave, as we expected, touching the target at 150.20, recording its highest level of 150.17.

On the technical side, the movements of the dollar and yen witnessed a rapid decline to the downside due to the collision with the psychological barrier resistance level of 150.00, which forced it to trade negatively to retest 147.30. By closely looking at the 4-hour time frame chart, we find the 50-day simple moving average starting to pressure the price from above and stimulating it. Momentum decline signals on short time frames.

From here, with the price remaining below the psychological barrier of 150.00, we may witness a bearish tendency aimed at retesting 147.70 before attempts to rise again, knowing that retesting does not contradict the general upward trend, whose targets are 150.50 and 151.10 once the breach of 150.00 is confirmed.

Note: Today we are awaiting high-impact economic data issued by the US economy: the change in private sector jobs, the services purchasing managers’ index issued by the ISM, the meeting of the OPEC Joint Ministerial Follow-up Committee, and the speech of Christina Lagarde, President of the European Central Bank, and we may witness high volatility at the time of the news release.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 147.70	R1: 150.50
S2: 146.05	R2: 151.70
S3: 144.80	R3: 153.40