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The USD/JPY pair exhibited a narrow sideways trend, confining its trading range between 151.20 on the lower end and just below the resistance level of 151.80.
From a technical perspective today, upon scrutinizing the 240-minute interval chart, the dollar/yen pair found sturdy support around 150.80, hinting at the potential for an upward movement supported by positive momentum from the simple moving averages. However, it’s noteworthy that the 14-day momentum indicator is beginning to show negative signals on shorter time intervals.
Given these conflicting technical indicators, we opt to temporarily observe the pair’s price action, anticipating one of the following scenarios:
- A breakthrough above the resistance level of 151.85 would bolster the prospects of targeting 152.20 and 152.80, respectively.
- Conversely, if the price dips below 150.80, it could signal a continuation of the downward trajectory, with initial targets set at 149.80.
As always, it’s essential to acknowledge the inherent risk involved in trading.
Furthermore, today’s market activity awaits a speech by Jerome Powell, Governor of the Federal Reserve, which could induce notable fluctuations in prices. Traders should exercise caution and remain vigilant in response to potential market volatility.
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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