USD/JPY outlook: Falls to eight-month low, eyes key 140.00 support zone
USD/JPY
USDJPY fell sharply overnight, hitting the lowest since early January, extending steep bear-leg off 155.21 lower top into fifth consecutive day.
The pair was down 3.3% in Asian session on Monday, remaining under increased pressure after downbeat US NFP data further soured dollar’s sentiment.
Large bearish candle of last week (USDJPY was down 4.7% for the week, in the biggest weekly drop since the second week of November 2022) weighs heavily on near-term action, in addition to firmly bearish daily studies (the latest formation of 5/200 and 10/200DMA death-cross) reinforcing negative near-term outlook.
Key supports at 140.25/00 (Dec 28 low / psychological) are coming in focus), though strongly oversold conditions on daily chart may spark a partial profit-taking.
Bounce is likely to be limited and ideally capped under today’s peak at 146.63, to provide better levels for re-entering bearish market, for push towards 140 zone, violation of which to generate another strong bearish signal.
Res: 144.58; 146.48; 146.68; 148.68.
Sup: 141.68; 141.00; 140.25; 140.00.
Interested in USD/JPY technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
