USDJPY December 3rd, no bulls left
In the current week, a definitive bearish sentiment is evident in the USDJPY pair. On the monthly chart, November closed with a bearish engulfing pattern, breaking and holding below October. The RSI is now sloping down at 62.10, and the MACD is printing smaller green bars, indicating a weakening bullish momentum. Shifting focus to the weekly chart, a clear reversal is apparent, with RSI now below the midline at 47.86 and MACD printing larger red bars, underscoring the increasing bearish pressure.
Upon closer inspection of the daily chart, it's evident that price broke below the 50-day EMA and experienced a sharp rejection on Thursday, followed by a significant downward move on Friday. The impending cross of the 20-day EMA below the 50-day EMA suggests a potential bearish trend continuation. The path downwards may lead to the 200-day EMA, positioned around 143.692, just below an earlier swing low marked as sell-side liquidity at 144.440.
Federal Reserve Chairman Powell's recent dovish comments have contributed to the prevailing bearish momentum, and unless the price breaks and sustains above last Thursday's high at 148.522, further downside movement is anticipated. In the event of a successful breach, the next potential target could be the recent swing high at 149.676, established last Monday. The daily RSI trending down well below its midline at 33.65 and the MACD printing larger red bars affirm the prevailing bearish sentiment, aligning with the broader technical analysis. Traders should closely monitor key levels and be prepared to reassess their positions based on evolving market conditions and external factors. Effective risk management remains crucial in navigating the uncertainties associated with the current market dynamics.
Upon closer inspection of the daily chart, it's evident that price broke below the 50-day EMA and experienced a sharp rejection on Thursday, followed by a significant downward move on Friday. The impending cross of the 20-day EMA below the 50-day EMA suggests a potential bearish trend continuation. The path downwards may lead to the 200-day EMA, positioned around 143.692, just below an earlier swing low marked as sell-side liquidity at 144.440.
Federal Reserve Chairman Powell's recent dovish comments have contributed to the prevailing bearish momentum, and unless the price breaks and sustains above last Thursday's high at 148.522, further downside movement is anticipated. In the event of a successful breach, the next potential target could be the recent swing high at 149.676, established last Monday. The daily RSI trending down well below its midline at 33.65 and the MACD printing larger red bars affirm the prevailing bearish sentiment, aligning with the broader technical analysis. Traders should closely monitor key levels and be prepared to reassess their positions based on evolving market conditions and external factors. Effective risk management remains crucial in navigating the uncertainties associated with the current market dynamics.
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