- USD/JPY extends losses from yesterday’s pullback from 21-day EMA.
- MACD cuts its bullish bias.
- Strong resistance near 100-day EMA and 50 Percent Fibonacci retracement.
USD/JPY was down 0.14 Percent from its previous close, extending yesterday’s pullback from the 21-day EMA. The pair was trading at 105.65 before the European open on Friday.
The pair’s MACD is also suggesting weakness, apart from the sustained selling below the near-term EMA, emboldening the bears to target 105.25, an upward sloping trend-line from July 31.
USD/JPY will find support near July 30 bottom around 104.70 and further at 104.20, the prior month low.
If the pair goes above the 21-day EMA level of 106.15, then 106.55 will be in play. But, the merger of 100-day EMA and 50 Percent Fibonacci retracement of June-July fall – at 107.05/10, will challenge the bulls.