Technical Analysis: USD/JPY Fails to Retain the Gains Fetched Earlier

USD/JPY continues to rule out the earlier fetched gains as it falls in the trading loop of 106 after a gradual fall from 107.7, since the beginning of the week. This decline is due to the marginal weakening of the US Dollar. With an increasing number of COVID-19 cases around the globe, US-China hassle tops the list of negative sentiments amongst the Coronavirus Pandemic.

However, in a way, this turned out to be beneficial for the Japanese Yen, and during the opening hours of the national market, JPY has hit a double bottom at 106.8, until the press time. The pair has been trading under pressure in the global market and had hit an intraday low at 106.7, yesterday, as per the Forex News.

Undoubtedly, if we look at the intraday movement of USD/JPY, the technicals turned utter bearish at the onset of the day, just to reclaim an intraday double top at 106.9, until the time of writing. However, while penning down, the USD/JPY has even shed from its intraday gains as it moves around its local support zone.

Considering the YTD movement of the pair, we see that the current movement of USD/JPY appears more or less flat since the mid of the previous month. With this, the pair is facing a major resistance around 108 over the past one month now.

Additionally, the pair lost imminent 200-day MA support after it declined below the 109 in April. And a further pull led the coin to lose the 50-day MA too. The RSI of USD/JPY also slid below the overbought zone and is lying at 49.31.