{"id":8511,"date":"2021-05-18T07:53:00","date_gmt":"2021-05-18T06:53:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=8511"},"modified":"2021-05-18T19:11:05","modified_gmt":"2021-05-18T18:11:05","slug":"usdjpy-technical-analysis-in-a-tough-spot","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/usdjpy-technical-analysis-in-a-tough-spot\/","title":{"rendered":"USDJPY Technical Analysis &#8211; In a tough spot"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"8511\" class=\"elementor elementor-8511\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b8cc195 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b8cc195\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6d49b79\" data-id=\"6d49b79\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a3b7c0e elementor-widget elementor-widget-text-editor\" data-id=\"a3b7c0e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The US dollar is in a tough spot against the Japanese yen currency right now, as the pair struggles to move back above the 110.00 level, at a time when the <a href=\"https:\/\/bit.ly\/3eIXPz1\" target=\"_blank\" rel=\"noopener\">US dollar index<\/a> is looking very troubled from a technical perspective.<\/p><p>Bulls have managed to hold the <a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\" rel=\"noopener\">USDJPY<\/a> above its 200-day simple moving average, however, the pair still remains vulnerable to further declines if the market continues perceive that the FED will need to continue printing money to shore-up the US economy.<\/p><p>Should we see inflationary pressure start to ramp up in the Japanese economy, then the USDJPY pair could be primed for further losses. This is making the upcoming Japanese CPI release incredibly important for positioning right now.<\/p><p>It is noteworthy that stagflation has dogged the Japanese economy for decades. If the backdrop for Japanese inflation changes, then it will be a game changer for markets. One month of strong US CPI inflation does not make a global trend, however, with supply chain issues, a lack of key car chip, and a declining labour market, the mentioned catalysts do have the potential to move the needle for Japanese inflation print.<\/p><p>Japanese CPI inflation is set to be released later this week, with most economists not expecting any major changes in normal CPI or core CPI. If a stronger than expected CPI or core CPI rise does occur it could be a big shock for markets.<\/p><p>The technical backdrop for the USDJPY pair is quite complicated right now, as a large head and shoulders pattern continues to loom in the background. Bulls need to crack the 111.00 level to invalidate the pattern, while bears have faced stiff buying pressure around 108.40 lately.<\/p><p>According to the ActivTrader Market Sentiment tool some 57% of traders are bearish towards the pair. Bearish sentiment has fallen since last week, although the slight negative skew remains in place. We probably need to see bullish sentiment increase further in order for a strong decline to take hold.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1dad9b2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1dad9b2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2b5d45d\" data-id=\"2b5d45d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7db93c9 elementor-widget elementor-widget-image\" data-id=\"7db93c9\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"301\" height=\"112\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/05\/USDJPY-CHART-2.png\" class=\"attachment-large size-large wp-image-8513\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7771c0e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7771c0e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-78b44f9\" data-id=\"78b44f9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bcb32b6 elementor-widget elementor-widget-text-editor\" data-id=\"bcb32b6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>USDJPY Short-Term Technical Analysis<\/strong><\/p><p>Technical analysis on the four-hour time frame shows that USDJPY pair has formed a bullish inverted head and shoulders pattern, with the pattern holding a 130-point upside projection.<\/p><p>The pattern will be activated if the price moves above the 109.70 level and will place the 111.00 level back in focus if the pattern ignited to its full upside potential.<\/p><p>Should bears invalidate the pattern, then a decline towards the 107.00 level will take place. Bears need to move the price under the 108.30 area this week to invalidate the inverted head and shoulders pattern.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e9f02f5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e9f02f5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ba0549a\" data-id=\"ba0549a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f52ccb4 elementor-widget elementor-widget-image\" data-id=\"f52ccb4\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"343\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/05\/usdjpy-4h-2.png\" class=\"attachment-large size-large wp-image-8515\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0096e97 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0096e97\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cdebb5e\" data-id=\"cdebb5e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ccca720 elementor-widget elementor-widget-text-editor\" data-id=\"ccca720\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e42d5b4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e42d5b4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7e8cfc3\" data-id=\"7e8cfc3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dd669a8 elementor-widget elementor-widget-text-editor\" data-id=\"dd669a8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>USDJPY Medium-Term Technical Analysis<\/strong><\/p><p>The daily time frame is showing that a bearish head and shoulders pattern has formed, except the head and shoulders on the higher time frames in much larger than the one seen on the lower time frame.<\/p><p>Once again, two possible scenarios exist. Either the USDJPY pair will fall under the 108.35 level and ignite the bearish pattern, which holds 250 points of potential downside.<\/p><p>To the upside, a break above the 110.90 level exposes a potential rally towards the 114.00 level. Overall, further upside should be expected if the price continues to hold above the 109.30 region.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-be3e1e6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"be3e1e6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ab10259\" data-id=\"ab10259\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-29b0bbe elementor-widget elementor-widget-image\" data-id=\"29b0bbe\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"346\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/05\/USDJPY-1D-1.png\" class=\"attachment-large size-large wp-image-8516\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a3cc1d1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a3cc1d1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f823bfb\" data-id=\"f823bfb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-74ea905 elementor-widget elementor-widget-text-editor\" data-id=\"74ea905\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The US dollar is in a tough spot against the Japanese yen currency right now, as the pair struggles to move back above the 110.00 level, at a time when the US dollar index is looking very troubled from a technical perspective. Bulls have managed to hold the USDJPY above its 200-day simple moving average, [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6751,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[42,427,22],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>USDJPY Technical Analysis - In a tough spot - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/usdjpy-technical-analysis-in-a-tough-spot\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USDJPY Technical Analysis - In a tough spot\" \/>\n<meta property=\"og:description\" content=\"The US dollar is in a tough spot against the Japanese yen currency right now, as the pair struggles to move back above the 110.00 level, at a time when the US dollar index is looking very troubled from a technical perspective. 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