USD/JPY Trapped in Indecisive Range as Key Indicators Signal a Stalemate

USD/JPY Price Analysis – September 11th

USD/JPY market is in a state of prolonged indecision, tightly bound within a well-defined trading range. Market indicators on the daily chart point to a perfect stalemate between buyers and sellers. This suggest the pair is awaiting a significant fundamental catalyst to trigger a directional breakout from its current state of equilibrium.

USD/JPY Key Levels

Support Levels: 146.25, 143.81
Resistance Levels: 148.80, 150.35

Following a strong rejection from the highs near 150.35 in August, the price has settled into a consolidation phase. As a result, the market has been unable to generate any significant directional momentum. This lack of follow-through from either bulls or bears has created a clear and balanced trading environment.

Currently trading at 147.17, the pair is showing no clear bias. The primary signal of this indecision comes from the Relative Strength Index (RSI), which is positioned at 49.02. A reading this close to the 50-midpoint is the textbook definition of a market in perfect balance.

While the Money Flow Index (MFI) is technically in positive territory at 59.24, its sideways trajectory diminishes its bullish implication, instead reinforcing the theme of a directionless market where buying interest exists but is not strong enough to overcome resistance.

USD/JPY Short-Term Trend: Ranging (4-Hour Chart)

The price action within this channel is choppy and characterized by small-bodied candles, a testament to the low-volatility, sideways environment.

The indicators on this shorter timeframe give a slight edge to the bears within the established range. The RSI, at 44.41, and the MFI, at 37.85, are both below their respective 50-midlines. This suggests that the immediate pressure is slightly to the downside. Also, the path of least resistance in the coming sessions could be a retest of the range support at 146.25.

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