USD/JPY chart - Trading View
USD/JPY trades rangebound with session highs at 105.94 and lows at 105.72.
Recovery in the pair lacks traction, upside capped at stiff resistance at 21-EMA at 106.09.
Fresh weakness in the US dollar amid holiday-thinned trading keeps the range play intact, as the uncertainty over the US fiscal aid looms.
Price action grinds lower in 'Sloping Channel' pattern. Downside intact as long as 21-EMA resistance holds.
With no major economic data scheduled for release, price action remains at the mercy of market sentiment.
A bullish MACD line crossover on signal line raises scope for some upside. Break above 21-EMA could change near-term dynamics.
Major Support Levels:
S1: 105.70 (5-DMA)
S2: 104.51 (Lower BB)
S3: 103.60 (Trendline)
Major Resistance Levels:
R1: 106.09 (21-EMA)
R2: 106.74 (55-EMA)
R3: 107.27 (110-EMA)
Summary: Major trend is bearish. Resumption of downside likely. Scope for test of 104.55. Bearish invalidation only above 21-EMA.
