Usdjpy Recovers Higher

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Usdjpy Recovers Higher

Usd/Jpy Recovers Higher To 147.00 On Weak Dollar

USD/JPY has extended its recovery phase and now saw hear 147.00 handle on Tuesday. The dominant theme for the pair is the US Dollar weakness which has allowed the Japanese Yen to shine once again.

Also, the market mood is very cautious which has also improved the appeal for the safe haven assets such as JPY. Looking ahead, the focus will be on the Fedspeak to get fresh insights on the Fed's policy.

Usd/Jpy Trades Below 9 Ema

For now, USD/JPY is trading at nearly 147.40, with 147.00 now serving as the near-term support. On the daily chart of USD/JPY, it seems that the pair is still below the 9 EMA. This is a sign that the short-term trend is still in the hands of the bears despite the recovery.

The RSI is also just above the 30, which shows the presence of bearish momentum. However, this also presents an opportunity for the USD/JPY to keep going higher as the RSI is still far away from the other extreme level of 70.

If we look at the long-term support levels of USD/JPY, the first one is at 145.00, while the next one is near 141.69. Any more selling will drag the pair lower towards 140.25.

And if we look at the USD/JPY resistance levels, the first one is in the form of 9 EMA located at 147.35. Next up is the 153.40 where the 50 EMA is located. A successful break of the 50 EMA on the D1 chart will be a sign that USD/JPY has resumed its uptrend once again.

The bottom line is that JPY still has the upper hand against the US Dollar. This upside is attributed to Japan's GDP for Q2, which showed healthy numbers. This has also boosted the chances of another rate hike by the Bank of Japan. So, as long as the USD/JPY pair trades below the 9 EMA near 147.35, the trend will remain bearish.

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