- USD/JPY accumulates mild losses in the Asian trading session.
- Bulls seem exhausted near YTD highs and retreats toward 110.50.
- Momentum Oscillators hold onto positive trajectory, with no clear directional signs.
USD/JPY extends the previous session’s losses on Tuesday. The pair fell sharply after testing the high of 110.98 and made a low of 110.48.
At the time of writing, USD/JPY is trading at 110.60, down 0.03% so far.
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On the daily chart, the USD/JPY pair has been consolidating near the 110.60 level. The formation of ‘spinning top’ candlestick formation on June 24 supports the prevailing downside movement in the pair.
If price sustained below the intraday’s sessions low at 110.56, then it could mean further negative price action, with the first target at the low made on June 22 at 110.21.
USD/JPY bears would next aim at the 20-day Simple Moving Average (SMA) at 110.13.
A break of 20-day SMA will add more selling pressure toward the 50% Fibonacci retracement, which extends from the low of 108.56 at 109.75. The Moving Average Convergence Divergence (MACD) indicator trades above midline with a neutral stance.
Alternatively, if price moves higher then it could continue with the prevailing long term uptrend in the pair. The bulls would attempt a recovery toward June 25 high at 110.98.
A daily close above the YTD high at 111.11 would bring 2018 levels back into action. USD/JPY will make an effort to test the May 2018 high at 111.39 followed by the high of March 2019 at 112.13.
