FX closed almost at previous weeks
open showing signs of increasing volatility.
Volatility towards Friday may increase, taking in consideration of BoJ Interest Rate Decision
USD/JPY hourly chart analysis
USD/JPY shows the price trading around 157.92, just below the key resistance level of 158.15. The three moving averages are positioned with the 50-period SMA above the price, indicating near-term resistance, while the 100-period SMA is also above the price, further reinforcing resistance at 158.15. The 200-period SMA is below the current price, suggesting longer-term support near 157.50. The RSI stands at 46.75, indicating neutral momentum, as it is neither in the overbought nor oversold zone. Key support is at 157.50, marked by the 200-period SMA, while resistance is at 158.15. If the price breaks above 158.15, it may test the next level at 158.50, but if resistance holds, the price could retrace to test support at 157.50.Hourly Chart
USD/JPY daily candle chart analysis
Looking at the daily chart for USD/JPY, the price is currently at 157.90, just below the recent high of 158.16. The three moving averages are positioned in a bullish formation, with the 50-day SMA above the 100-day and 200-day SMAs, which supports the overall upward momentum. The price recently pulled back from the high and is approaching the 50-day SMA near 157.40, which could act as immediate support. If this level holds, it could suggest the potential for another upward move toward the resistance at 158.16, with the next target around 160.00. However, if the price falls below the 50-day SMA, the next support levels to watch are 153.09 and 149.29. Overall, the trend is still bullish, but a break below the 50-day SMA could signal a shift towards a more neutral or bearish outlook.
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Traders are short
For USD/JPY, the sentiment shows that traders are predominantly short, with 66.78% holding short positions and 33.22% holding long positions. This may indicate a bearish outlook among traders, although the sentiment could shift if the price breaks key resistance levels.