FxNews—The Greenback (dollar) trades in a bear market against the Japanese Yen. The robust selling pressure slowed when the USD/JPY price slumped to near the December 2023 low of 140.3.
The daily chart below demonstrates the price, key support and resistance levels, and indicators used in today’s technical analysis.
USDJPY Technical Analysis – 12-September-2024
USD/JPY is in a bear market because the price is below the 50- and 100-period simple moving averages. However, the Awesome oscillator signals divergence and the bars are green and about to flip above the signal line. This development in the AO’s histogram suggests the trend has a reversal potential.
Interestingly, the USD/JPY 4-hour chart formed an ABCD bullish pattern, signaling the American dollar could potentially erase some of its recent losses against the Japanese currency.
Overall, the technical indicators suggest the primary trend is bearish, but the market could reverse from the 140.3 critical support.
USDJPY Forecast – 12-September-2024
The December 2023 low at 140.3 is the critical support for the current downtrend. Interestingly, the daily chart formed a hammer candlestick pattern near this support.
From a technical perspective, the Awesome oscillator’s divergence in the 4-hour chart and the hammer candlestick pattern in the daily chart suggests a new bullish wave could be on the horizon.
The USD/JPY immediate resistance is today’s high at 143.2. If bulls (buyers) close and stabilize the price above 143.2 or the Super trend indicator, the bullish momentum that began yesterday will likely retest 146.8 (September 02 High).
Furthermore, if the buying pressure exceeds 146.8, the next bullish target could be the August 15 high, the 149.4 mark. Please note that the bullish scenario remains valid as long as the price is above the 140.3 support.
USD/JPY Bearish Scenario – 12-September-2024
As mentioned in this article, critical resistance lies at the 140.3 low. The downtrend will be triggered again if the bears (sellers) close and stabilize the price below 140.3. If this scenario unfolds, the bear’s path to the July 2023 low at 137.2 will likely be paved.
Please be aware that the primary resistance for the bearish scenario is the descending trendline in the 4-hour chart. The bear market should be invalidated if the USD/JPY price exceeds 146.8.
USDJPY Support and Resistance Level – 12-September-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 140.3 / 137.2
- Resistance: 146.8 / 149.4
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.