The USD/JPY pair is trading around the 110.00 psychological level, having formed a double bottom pattern at the zone of 109.76, support of 5/8 murray. It is now consolidating above the 21 SMA, showing signs of a bullish move in the short term.
Yields on US government bonds fell to new weekly lows. The 10-year Treasury yield stood at 1.299%, limiting the rise in USD / JPY. As a result, we have seen a consolidation of the pair at the 5/8 murray support zone.
In 4-hour charts, there is some downward pressure for the Japanese yen, as long as it is below the 200 EMA (110.30). The pair could fall to the level of 109.73 and 109.37 4/8 murray support zone.
In case of a sharp breakout and a consolidation above the 200 EMA located at 110.30, the pair could gain strong bullish momentum to the 110.54 and 110.93 (8/8) resistance zone.
The technical reading of the eagle indicator is showing a bullish signal. Therefore, a good opportunity to buy the USD / JPY pair is above the 110.00 zone or if there is a technical bounce towards the 109.76 support zone, buy with targets at 110.15 and 110.54.
Support and Resistance Levels for July 16 - 19, 2021
Resistance (3) 111.00
Resistance (2) 110.44
Resistance (1) 110.24
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Support (1) 109.77
Support (2) 109.49
Support (3) 109.28
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Trading tip for USD/JPY for July 16 - 19, 2021
Buy above 5/8 of murray at 109.76/84, with take profit at 110.30 (EMA 200) and 110.54 (7/8), stop loss below 110.30.
