USD/JPY retreats after failing to extend its rally, despite US 10-year Treasury yield rising five basis points.
Technical outlook remains upward biased, with buyers eyeing a break above 149.14 and targeting 150.00 in the short term.
A drop below 148.00 could see further downside, with key support at 147.00 and the bottom of the Ichimoku Cloud at 146.87.
The USD/JPY retreated after rallying for three straight days, even though the US 10-year Treasury noy yield rose five basis points. Risk aversion drives price action as the Middle East war escalates amid an exchange of fire between Israel, Hezbollah, and Hamas. At the time of writing, the pair trades at 148.12 after hitting a daily peak of 149.14.
USD/JPY Price Forecast: Technical outlook
The USD/JPY failed to extend its uptrend after piercing inside the Ichimoku Cloud (Kumo), which opened the door for further upside. Alongside that, the pair cleared the 50-day moving average (DMA) at 145.17, and since then, buyers have set their sights on 150.00.
Bullish momentum has faded, as shown by the Relative Strength Index (RSI) slope’s downward aiming. Still, the USD/JPY is upward biased in the short term.
Given the backdrop, the USD/JPY first resistance will be the 149.14 daily high of October 7. Once surpassed, the next stop would be 150.00. If those levels are surrendered, bulls could challenge the 200-DMA at 151.09.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.