The USD / JPY pair is trading below the 21 SMA and above the 4/8 Murray, showing a buy signal although it could enter overbought levels if it approaches the 110.00 area.
The US Dollar Index (USDX) is strengthening 0.28% on Wednesday and is trading at 90.17. It is climbing for the second day in a row. The rises occur even despite the moderate decline in Treasury yields. The 10-year rate is 1.60%.
The USD / JPY pair remains below the psychological level of 110.00. We have identified the key support at 109.37, 4/8 murray zone on several occasions the pair has been rebounding, which confirms that this floor could give it the bullish momentum to the level of 110.15 where the 6/8 murray resistance is located.
The technical reading of the eagle indicator shows that the USD / JPY pair is approaching an overbought zone. So it is likely that there is a bearish movement in the coming days. The resistance zone of 109.76 and 110.16 are the key levels where we could sell.
Therefore, if the Japanese Yen makes a technical rebound at 109.37, we can buy with targets in the 109.76 area. On the contrary, with a break below this 4/8 support level, the pair could fall to the dynamic support of the 200 EMA located at 108.90. This level will give the pair a good bounce.
Our recommendation is to trade between the range levels of 109.37 buying and 109.76 selling. The bias will be bearish in the short term, given that the eagle indicator is in the overbought zone.
Support and Resistance Levels for June 02 – 03, 2021
Resistance (3) 110.07
Resistance (2) 109.89
Resistance (1) 109.70
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Support (1) 109.31
Support (2) 109.13
Support (3) 108.88
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Trading tip for USD/JPY (gold) for June 02 - 03, 2021
Buy if rebound 109.37 (4/8 of murray), with take profit at 109.76 (5/8), stop loss below 109.00.
Sell at 109.76 (109.76), with take profit at 109.37 (4/8) and 108.90 (EMA 200) stop loss above 110.00.
