USD/JPY fell to its lowest level in almost three weeks at 114.51, showing strength against the dollar, as a safe-haven asset like gold which reached the 1,913 level. From that level, the pair is bouncing back and is now approaching the 200 EMA on the 1-hour chart, losing some of its gains.
USD/JPY has been drifting higher in the last hours, staying above 115.00 early in the American session. The pair is above the 21 SMA around 114.70, with a positive bias but has a strong top at 115.17.
The Japanese Yen performed well yesterday, supported by risk aversion. As long as it remains below the 200 EMA, it could resume its decline towards 114.70 and reach 114.51.
USD/JPY is moving with a bullish bias in the short term, testing the resistance area at 115.05. A break to the upside will open the way for more losses, targeting the zone 115.23 (7/8) and up to 8/8 Murray at 115.62.
A daily close above 115.23 (200 EMA) as well as a breakout of the downtrend channel will be the start of a new uptrend towards the key level of 116.01 (+1/8 Murray).
Our trading plan for the next few hours is to buy USD/JPY as long as it remains above the level 114.70. On the other hand, a sharp break above 115.10 will be an opportunity to continue buying with targets at 115.62(8/8) and 116.01.
The eagle indicator is hovering above an uptrend channel which favors our strategy to continue buying the yen in the coming days.
Support and Resistance Levels for February 22 - 23, 2022
Resistance (3) 115.68
Resistance (2) 115.39
Resistance (1) 115.23
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Support (1) 114.84
Support (2) 114.59
Support (3) 114.44
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Scenario
Timeframe H4
Recommendation: buy if rebound
Entry Point 114.70
Take Profit 115.62; 116.01
Stop Loss 114.32
Murray Levels 116.01 (+1/8), 115.62(8/8), 115.23 (7/8), 114.84(6/8)
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