FX.co ★ Blackpink | USD/JPY

The USD/JPY currency pair is struggling to capitalize on its recovery from the week's lows, even though it traded above 158.00 during the European session. Investors hope the release of US Non-farm Payrolls (NFP) data will provide direction ahead of the weekend. For now, anticipation of a rate hike by the US Federal Reserve (Fed), coupled with ongoing geopolitical concerns, is giving the greenback impetus to push higher after it rebounds from the lowest level seen since late September. As a result, the USD/JPY is getting a boost from the situation. However, the BoJ's hawkish stance and intervention risks prevent further JPY declines. Technically, the spot is expected to be bearish in the short term, as it trades below the 100-day SMA at 159.09 and the 50.0% Fibonacci retracement at 158.44. In addition, the RSI of 49.37 is neutral and does not do much to counter the bearish bias. Also, the MACD histogram has flattened just above zero, suggesting reduced bearish momentum without a recovery. Further, the latest range-bound action over the past seven weeks should prompt traders to wait for a clear breakout on the spot to confirm short-term direction. Top-side starts at the 50% retracement at 158.44, then the 100-day at 159.09, then the retracement at 159.76. Further up, the 78.6% level at 161.65 and the cycle high at 164.05 serve as broader caps. The negative for the currency pair is that the first support level comes at the 38.2% Fibo. level at 157.12, followed by the 156.65 area, which represents the lower border of the trading range. The 23.6% retracement at 155.48 could serve as a more distant target if selling resumes before falling to the cycle low at 152.83.