USD/JPY snaps its two-day losing streak on the weaker (USD), trading higher around 146.70 during the European session on Friday. The psychological level at 147.00 appears to be the immediate resistance.A breakthrough above this resistance level could reinforce the pair’s strength to reach the nine-day Exponential Moving Average (EMA) at 147.12. In case the USD/JPY pair surpasses the nine-day EMA, it could attempt to approach the psychological resistance zone around the level of 148.00 followed by the weekly high at 148.33.The technical analysis of the 14-day Relative Strength Index (RSI) for USD/JPY suggests a bullish momentum as it is positioned above the 50 level.However, the lagging indicator of the Moving Average Convergence Divergence (MACD) signals a shift in , with the MACD line positioned above the centerline but displaying a divergence below the signal line. Traders may choose to wait for MACD confirmation for a clearer direction before making aggressive bets on the USD/JPY pair.On the downside, the pair could encounter major support at the 146.50 level, following the psychological support at 146.00. A decisive break below this level could exert downward pressure on the pair, potentially reaching the 38.2% retracement at 145.53, aligned with the major support at 145.50.
USD/JPY: Daily Chart(Click on image to enlarge)
USD/JPY: Additional Levels To Watch
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