USD/JPY Price Analysis: Sellers attack fortnight-long support around 142.50
|- USD/JPY holds lower ground near the short-term key support line.
- Bearish MACD signals, sustained trading below 21-SMA add strength to the downside bias.
- Bulls need validation from 143.10 to retake control.
USD/JPY reverses the week-start gains as it pokes the 12-day-old support line near 142.50 during the early Tuesday morning in Europe.
In doing so, the yen pair justifies Friday’s downside break of the 21-SMA, as well as the previous day’s U-turn from the stated SMA, while also tracing the bearish MACD signals. With this, the quote is likely to break the immediate 142.50 support.
However, an upward sloping trend line from August 11, close to 140.80, holds the key to the USD/JPY bear’s entry.
In a case where the risk barometer pair breaks the 140.80 support, the tops marked during late August around 139.00 and 137.80-75 will gain the market’s attention.
On the contrary, a convergence of the 21-SMA and the downward sloping trend line from the last Wednesday, close to 143.10, appear a tough nut to crack for the USD/JPY buyers.
Should the quote rises past 143.10, the odds of witnessing another run-up towards refreshing the 24-year high, currently around 145.00, can’t be ruled out.
To sum up, USD/JPY is expected to witness a limited downside move.
USD/JPY: Four-hour chart
Trend: Limited downside expected
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