Summary:
- The pair comes back to the consolidation from the second half of 2018
- The pair keeps approaching the daily SMA200
- USDJPY stays within the bullish channel
After the flash crash which took place at the beginning of 2019, the USDJPY quickly erased its losses. Improved market sentiment contributed to this reversal. Technically the pair is now coming back to the consolidation from the second half of 2018. This area is supported by the 61.8% retracement of the latest bearish wave as well as the WMA100.
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Source: xStation5
The daily chart shows that the bounce from the January’s low has coincided with what it’s happening in the SP500. Keep in mind that the yen is considered as a safe haven currency, hence it tends to appreciate in an environment of increased risk. The pair is approaching its local resistance nearby 111.5/111.8. The local lows from October 2018 might be found there as well.
Source: xStation5
In the short-term the pair keeps moving within the bullish channel. The H4 chart suggests that the first notable support could be found in the vicinity of the 50SMA. Of course, the upper bound of the channel is likely to be an obstacle for bulls too. The SMA200 along with the lower bound of the channel could be treated like the second important support for the pair.
Source: xStation5
