The USD / JPY pair is trading below the 21 SMA in a 4-hour chart and below the 8/8 Murray, with a bearish bias. The price is retreating after having reached the high of 111.08. Now it is located in the area of 110.54.
The Japanese Yen strengthened yesterday as the 10-year US Treasury yield peaked at 1.53%. Given that the Yen is a safe haven asset, it is expected that below the 111.08 level it will continue to strengthen on condition that the 8/8 of murray is located there. This represents an area of strong resistance.
The Bank of Japan is confident that the immunization campaign will boost the economy, but inflationary pressures are expected to remain subdued amid the fragile recovery. This data could strengthen the Japanese Yen for a long time.
According to the 4-hour chart of USD / JPY, it has tried several times to break the 110.93 area, but from this level we have seen a drop and it has consolidated below the 21 SMA (110.75). The currency pair is expected to fall to the 6/8 murray support. If the downward pressure accelerates, it could take it to the 200 EMA zone.
The technical reading of the eagle indicator is showing a bearish signal. Therefore, our recommendation is to sell below the SMA of 21. While the USD / JPY pair consolidates below 110.75, it is expected to fall to the 109.71 zone (EMA 200 ).
Support and Resistance Levels For June 29 - 30, 2021
Resistance (3) 111.35
Resistance (2) 111.16
Resistance (1) 110.87
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Support (1) 110.37
Support (2) 110.20
Support (3) 109.71
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Trading Tip for USD/JPY for June 29 - 30, 2021
Sell if pullback 110.75 (SMA 21) with take profit at 110.15 and 109.71, stop loss above 111.05
Sell below 110.54 (7/8) with take profit at 110.15 and 109.71 (EMA 200), stop loss above 110.85.
