USD/JPY Price Forecast: Bulls retake 200-day SMA amid recovery
The USD/JPY advances by some 0.41%, clearing the 200-day Simple Moving Average (SMA) at 158.06, as the Greenback recovers some ground following two days of intervention in the FX markets by US and Japanese authorities.
The USD/JPY currency pair has shown an upward movement, breaking the 200-day Simple Moving Average (SMA) at 158.06. The Greenback has been recovering following two days of intervention in the foreign exchange markets by US and Japanese authorities. As of the latest data, the pair is trading at 158.39, after reaching a low of 157.56 during the trading day.
Although the overall trend is still downwards, the recent recovery has pushed the USD/JPY spot prices above the 200-day SMA. The Relative Strength Index (RSI) remains bearish, although it has exited the oversold territory near 20. Analysts believe that a daily close above the 200-day SMA could open the door for further Yen strength, with the next resistance at the 159.00 mark.
If cleared, traders will then look to test the 100-day SMA at the 160.00 psychological level. Conversely, if the USD/JPY falls below the 200-day SMA, it could trigger another downward trend, with the next support level at the August 4 daily low of 157.18, followed by the August 3 swing low of 155.23.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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