USD/JPY Price Analysis: Trendline hurdle reverses early Asian session bounce

USD/JPY is trimming gains, having failed to take out the resistance of the trendline rising from Feb. 2 and Feb. 18 lows. At press time, the trendline  |  26/02/2020 02:00
  • USD/JPY's early gains have been reversed by key trendline hurdle. 
  • The hourly chart bullish indicator divergence is still valid. 

USD/JPY is trimming gains, having failed to take out the resistance of the trendline rising from Feb. 2 and Feb. 18 lows. 

At press time, the trendline resistance is seen at 110.35 and the pair is trading largely unchanged on the day at 110.20. 

The pair pulled back from session highs, as the anti-risk yen found bids possibly tracking the action in the US equity index futures. The S&P 500 futures, which were up more than 0.20% losses, had dropped into the red a few minutes ago. 

The futures, however, seem to have again regained pose. Currently, they are reporting a 0.38% gain. As a result, the markets may offer yen, helping the USD/JPY rise back to session highs near 110.35. 

Also, the bullish divergence of the hourly chart relative strength index (RSI) is still valid. So, a stronger bounce to levels above 110.35 cannot be ruled out. That would expose the 200-hour average lined up 110.64. 

On the downside, a move below 109.89 would invalidate the bullish divergence and could cause more sellers to join the market, yielding a drop to the 50-day average at 109.64.

4-hour chart

Hourly chart

Trend: Bearish

Technical levels

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for Market Insight viewers

Back

Login to Market Insight Account

Your Market Insight account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

Create a Market Insight's Account

Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to Market Insight family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@marketinsight.com