- USD/JPY trims early gains while probing intraday low near 103.50
- 200-HMA, immediate falling trend line guard immediate upside as MACD dwindles.
- Weekly support line lures the sellers as US dollar drops amid risk-on mood.
- Increasing chatters over Brexit deal, US stimulus favor the risks.
USD/JPY holds lower ground near 103.50 after recently declining below 200-HMA during early Thursday.
In doing so, the quote justifies the broad US dollar weakness amid a risk-on mood ahead of the key announcements concerning Brexit and the US coronavirus (COVID-19) stimulus. Also eyed will be the speech from the Bank of Japan (BOJ) Governor Haruhiko Kuroda.
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That said, the quote’s multiple pullbacks from 200-HMA, marked since December 10, join the falling trend line from Tuesday to take weight on the USD/JPY prices amid sluggish MACD.
The current downside momentum eyes an ascending support line from late-Friday, near 103.40 whereas any further weakness will direct sellers toward 103.20 and the 103.00 round-figures.
If at all the USD/JPY bears dominate past-103.00, the monthly low near 102.85 holds the gate for an extended south-run targeting March bottom of 101.18.
Alternatively, an upside clearance of 200-HMA and stated resistance line, respectively around 103.55 and 103.65, will eye for the 104.00 before heading to the monthly top of 104.75.
USD/JPY hourly chart
Trend: Further weakness expected
