USDJPY sharply drops after touching the 200-period SMA.
- USDJPY battle with a new 5-week low
- USDJPY battle with a new 5-week low
- MACD and stochastic confirm bearish bias
USDJPY plummeted 1.2% in the preceding 4-hour sessions, finding strong resistance near the 200-period simple moving average (SMA) at 150.00. The pair dived to a new five-week low of 148.15 and is currently moving even deeper.
Technically, the MACD oscillator is stretching its bearish momentum to the downside, beneath its trigger and zero lines, while the stochastic holds in the oversold area, both suggesting steeper losses.
Any additional declines could remain attractive to traders unless the price dives below the five-week low of 148.15 and the 148.10 support level. If that bearish scenario unfolds, the pair could tumble towards the 147.25 base.
Should the bulls return, they will likely first push for a close above the 148.80 resistance level. Then, they could fight for a jump above the 149.20 barrier and if efforts prove successful, the pair may advance towards the 200-period SMA at 150.00. Even higher, the market may switch to a more positive bias, hitting the 20- and the 50-period SMAs at 150.20 and 150.80 respectively.
In brief, USDJPY is heading for a strong negative daily close, shifting the short-term outlook to significantly bearish. Otherwise, a jump above the 200-period SMA may change the bias to bullish.