USD/JPY: Price Analysis and Forecast. Bears Trading the Japanese Yen Show Indecision

[Ben Graham]

The intraday drop below the round level of 156.00 and the 100-hour and 200-hour simple moving averages (SMA) confirms the possibility of further declines amid negative oscillators on the hourly chart. However, on the daily chart, the oscillators remain in positive territory, suggesting that a further decline may attract buyers near the round level of 155.00. It is also important to note that the relative strength index is close to neutral, indicating weakness among bulls.

Further selling below the psychological level of 155.00 would shift the short-term trend in favor of the USD/JPY bears.

On the other hand, sustained momentum above the round level of 156.00 could lift spot prices to 156.60-156.70 on the way to the round level of 157.00 or to the two-week high reached on Tuesday. Long positions above this level would pave the way for additional growth. Subsequently, the USD/JPY pair might surpass intermediate resistance levels of 157.20 and 157.50, aiming for the multi-month high around 158.00 reached in November.

The material has been provided by InstaForex Company - www.instaforex.com