USDJPY

The USDJPY pair struggled to sustain its gains and traded in a narrow range during the Asian session on Wednesday. The sluggish price action suggests indecision among market participants amid mixed fundamental cues and calls for some caution before taking positions on the direction of the next leg of the move. From a technical perspective, the failure to find acceptance above 148.80 this week has led to the formation of a bearish double top formation. However, oscillators on the daily chart – despite losing momentum – are still in positive territory, with some follow-up selling below the 100-day Simple Moving Average (SMA) anchored near the 147.60-147.55 region could drag the USD/JPY pair towards the psychological 147.00 level and a move towards the monthly low touched last week below 146.00. Support: 145.490 Resistance: 149.210