Market news

13 May 2022

USD/JPY Price Analysis: Bulls looking to seize back control near 129.00 mark, 23.6% Fibo.

  • A combination of supporting factors assisted USD/JPY to regain positive traction on Friday.
  • Bulls, however, seem struggling to capitalize on the move beyond the 23.6% Fibo. level.
  • Weakness back below the 128.00 mark would pave the way for a deeper corrective slide.

The USD/JPY pair built on the overnight late rebound from over a two-week low and gained some follow-through traction on the last day of the week. The pair maintained its bid tone through the early North American session and was last seen trading just below the 129.00 mark, up nearly 0.50% for the day.

The risk-on impulse - as depicted by a strong recovery in the equity markets - undermined the safe-haven Japanese yen and acted as a tailwind for spot prices. Bulls further took cues from a solid rebound in the US Treasury bond yields, though a softer tone surrounding the US dollar capped the USD/JPY pair.

From a technical perspective, the recent pullback from a two-decade high stalled on Thursday near the 38.2% Fibonacci retracement level of the 121.28-131.35 strong move up. The mentioned support, around mid-127.00s, should act as a pivotal point for traders and help determine the near-term trajectory.

The subsequent move up, however, lacked follow-through beyond the 23.6% Fibo. level. This warrants some caution for bullish traders and positioning for any further appreciating move. In the meantime, the 128.50 region now seems to protect the immediate downside ahead of the 128.00 round-figure mark.

A convincing break below the latter would be seen as a fresh trigger for bearish traders and make the USD/JPY pair vulnerable to retesting mid-127.00s (38.2% Fibo.). the corrective decline could further get extended towards the 127.00 mark en-route the 50% Fibo. level, around the 126.45 region.

On the flip side, any subsequent move up is likely to confront stiff resistance near the 129.75-129.80 region. This is closely followed by the 130.00 psychological mark, which if cleared will negate any near-term negative bias. The USD/JPY pair might then aim back to reclaim the 131.00 round figure.

USD/JPY 4-hour chart

fxsoriginal

Key levels to watch

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location