BUZZ-COMMENT-USD/JPY keeps failing to close below key levels

May 7 (Reuters) - USD/JPY failures below key technical levels are bullish signs in a market that is otherwise overshadowed by intervention risks.

The dollar remained on the defensive on Thursday as hopes for a de-escalation in the Iran-U.S. war supported oil-exposed currencies, while Tokyo resumed its verbal intervention in support of the yen, keeping speculators cautious. However, there are signs on the daily chart that USD/JPY could stage a sustained recovery in the days ahead.

USD/JPY has in recent sessions failed four times to close below the base of the Ichimoku daily cloud, which currently spans the 156.29-158.62 region. Spot has also failed to sustain four breaks below the 155.50 Fibonacci level, a 61.8% retrace of the 152.28 to 160.72 (February to April) EBS rise.

These repeated downside failures below these technical levels are potential bear traps, which occur when prices break a technical level but quickly reverse and are typically bullish. Related comment.

For more click on FXBUZ


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.