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The technical outlook for the USD/JPY pair remains unchanged, with negative stability persisting below the robust resistance level at 149.90.
Upon closer inspection of the 4-hour chart, it is evident that the Stochastic indicator has entered overbought territory, coupled with a continued movement below the 50-day simple moving average. This maintains the potential for a downward trend, targeting a retest of 149.00. It’s important to note that a breach below this level would likely prompt the pair to resume its downward corrective path, with an official target of 148.30/148.50.
Conversely, if stability returns to trading around 149.90, it completely negates the activation of the proposed scenario, and an upward trend may unfold with targets set at 150.20 and 150.60, respectively.
Warning: Today’s market activity will be influenced by impactful economic data from the Eurozone, the press talk by the President of the European Central Bank, and updates from the American economy. The release of the “preliminary reading of the services and manufacturing purchasing managers’ index” may induce high price fluctuations.
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.
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