The USD/JPY pair has seen a decline as the US Dollar weakens on the back of the dovish Federal Reserve’s outlook in the first quarter of 2024. During the early European session on Thursday, the pair is trading lower around 140.80. In this article, we will analyze the current technical indicators and levels of support and resistance for the USD/JPY pair.
The subdued US Dollar has been a key driver behind the recent slide seen in the USD/JPY pair. This decline is a result of the dovish outlook presented by the Federal Reserve, which has dampened the sentiment towards the US Dollar. Traders and investors are cautious about the future direction of the USD/JPY pair as the US Dollar continues to weaken.
Technical indicators for the USD/JPY pair suggest a bearish sentiment. The 14-day Relative Strength Index (RSI) is currently below the 50 level, indicating a weaker sentiment. Additionally, the Moving Average Convergence Divergence (MACD) line is positioned below the centerline and the signal line, signaling a bearish momentum in the market for the USD/JPY pair. These technical indicators are further supporting the view of a potential decline in the pair.
The immediate resistance for the USD/JPY pair is at the 141.00 psychological level. A firm break above this level could lead the pair to reach the nine-day Exponential Moving Average (EMA) at 142.41. If the pair successfully surpasses this level, the next barrier would be the 23.6% Fibonacci retracement level at 143.35.
On the other hand, if the bearish sentiment continues, the USD/JPY pair could potentially test the major support region around 140.50. A decisive break below this level may open the door for the pair to test the psychological level at 140.00.
The USD/JPY pair has experienced a decline as the US Dollar weakens amid the dovish Federal Reserve’s outlook. Technical indicators suggest a bearish sentiment for the pair, and there are key levels of resistance and support to monitor. Traders and investors should closely watch the USD/JPY pair as it continues to be influenced by the performance of the US Dollar in the coming days.
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