- USD/JPY turns around 105.29 after recent weakness.
- A bearish MACD and monthly resistance line check the bulls.
- Bears will be tested at 61.8 Percent Fibonacci retracement of July-August up-move.
USD/JPY rose 0.25 Percent to 105.61 on Friday’s pre-European session. The coronavirus vaccine hopes and the lessened uncertainty over Japan’s leadership turned the market sentiment positive, helping the yen pair to pick up bids.
The S&P 500 Futures and Asia-Pacific stocks went up, with the former hitting record highs above 3,500 and the latter led by 1.9 Percent gains in Japan’s Nikkei 225.
The risk-on mood helped USD/JPY to continue its bounce on Friday from the critical Fibonacci retracement support; the pair now challenges its previous-support-now-resistance level of 105.67.
The pair had failed many times at this resistance. The repeated failures and the bearish MACD challenge the bulls.
Even if the USD/JPY manages to push past 105.67, further tests await at the confluence of 100 and 200-bar SMA level near 106.10.
A downside break of 61.8 Percent Fibonacci retracement at 105.27 means 105.10 will be in play and will help bears to push the target to 104.80 and 104.20 later.
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