USD/JPY Price Analysis: Drops back below 135.00 but sellers have a bumpy road
|- USD/JPY holds lower ground after rising for four consecutive weeks.
- Two-day-old ascending trend channel, monthly support line challenge bears.
- Bulls need a clear break of 100-HMA to retake control.
USD/JPY takes offers to refresh intraday low around 134.50 following a four-week uptrend. In doing so, the yen pair extends its pullback from a short-term bullish channel’s resistance line, as well as a downside break of the 100-HMA.
Also adding to the bearish bias are the downbeat MACD signals and a weekly falling trend line.
That said, the bottom line of the aforementioned channel from Thursday, near 134.40, restricts the immediate downside of the yen pair before directing it towards an upward sloping support line from May 27, near 133.90 by the press time.
In a case where the quote drops below 133.90, it becomes vulnerable to fall towards the mid-month low near 131.50.
On the contrary, the weekly resistance line near 135.25 and the stated channel’s upper line, close to 135.40 by the press time, limit the short-term recovery of the USD/JPY pair.
Following that, the 100-HMA level of 135.55 challenges the bulls before directing them to the monthly peak near 136.70.
Overall, USD/JPY is likely to witness limited downside as bulls take a breather.
USD/JPY: Hourly chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.