Wednesday, October 28

USD/JPY Price Analysis: Surrenders gains after rejection above 105.70

  • USD/JPY again fails to keep gains above 105.70. 
  • Technical charts suggest scope for a deeper pullback. 

USD/JPY is now trading mostly unchanged on the day near 105.60, having clocked a high of 105.80 early Wednesday.

The pair has failed to keep gains above 105.70 for the fourth straight day, and the repeated rejection suggests the bounce from the Sept. 21 low of 104.00 has run out of steam.

Further, the indicators on the hourly and 4-hour charts are beginning to roll over in favor of the bears.

As such, the pair may decline to the psychological support of 105.00. A close above 105.70 is needed to revive the immediate bullish view.

Daily chart

Trend: Buyer fatigue

Technical levels

Credit: FX Street

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