USD/JPY Price Forecast: Hammer signals rebound risk near 156.00
The Japanese Yen finished the week on a higher note as the USD/JPY pair registered losses of over 0.74% in the week, while holding firm daily amid a sour market mood. The pair trades at 156.85 as a ‘hammer candle pattern’ forms.
The Japanese Yen strengthened this week, resulting in a 0.74% decline in the USD/JPY pair. A hammer candlestick pattern emerged as the pair settled at 156.85. The price action suggests potential for further sideways movement within the 156.00-159.00, 300-pip range. Neither buyers nor sellers have been able to break through the current support and resistance levels.
The 14-day Relative Strength Index (RSI) has dropped below the 50-neutral level, indicating increasing selling pressure. The path of least resistance appears to be downwards. The first support is at the psychological level of 156.50, followed by the October 23 daily low of 156.08 and the October 27 low of 155.00. A breach of the latter may expose the September 8 low of 152.89.
The first resistance is the 50-day Simple Moving Average (SMA) at 157.57, followed by the 100-day SMA at 158.50 and the 200-day SMA at 159.35. The Japanese Yen was the strongest against the US Dollar this week. Markets analyst and trading instructor provided insights on the currency pair's performance.
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