USD/JPY Forecast: Bearish potential increasing

Valeria Bednarik FXStreet

USD/JPY Current price: 116.52

View Live Chart for the USD/JPY

Bearish potential increasing. The USD/JPY pair surged to a daily high of 117.53 at the beginning of the day, but the negative tone in European equities helped the yen to advance, now trading near its daily low of 116.46. The failure attempt to hold gains beyond the 117.00, has increased the risk of a bearish breakout for the upcoming sessions, particularly if the 116.00 level also gives up. Short term, technical readings support a bearish extension, as in the 1 hour chart, indicators head sharply lower, approaching oversold territory, whilst the price is below its 100 and 200 SMAs, both converging in the 116.90/117.00 region and slowly gaining bearish momentum. In the 4 hours chart, the price retreated after flirting with its 100 SMA, whilst technical indicators turned south and reentered bearish territory, also supporting further slides for this Monday.

Support levels: 116.40 116.00 115.65

Resistance levels: 116.85 117.20 117.55

Interested in USD/JPY technicals? Check out the key levels

1. R3 117.56
2. R2 117.41
3. R1 117.28
PP 117.12
1. S1 117.00
2. S2 116.84
3. S3 116.71

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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