USD/JPY keeps looking for support, challenges 136.00

Japanese Yen among top performers as the US Dollar remains under pressure.
Greenback resumes slide after United States’ economic reports.
USD/JPY down more than 200 pips, but no signs of stabilization seen so far.

Matías Salord FXStreet

The USD/JPY printed a fresh three-month during Thursday’s American session, following the release of US economic data at 135.73. It then bounced modestly toward the 136.00 zone. It remains under pressure, with the US Dollar down across the board.

Easing inflation in the US hits the Dollar

On Wednesday, Federal Reserve Chairman Jerome Powell pointed toward a slowdown in rate hikes, as soon as December. His comments were no surprise but triggered a rally in stocks and in Treasuries. The US Dollar began a decline that is still going on.

Inflation data released on Thursday showed a slowdown, although still at elevated levels with the Core PCE at 5% (annual) in October down from the 5.2% of September. Personal income and Spiting rose 0.7% and 0.8% respectably. Continuing Jobless Claims rose for the seventh week in a row to the highest level since March.

The numbers did not help the Dollar and US yields held near monthly lows, supporting the Japanese Yen. Not even higher equity prices in Wall Street are offsetting the strength of the yen.

Oversold?

The USD/JPY is on its way to the lowest daily close since mid-August, falling for the fourth consecutive day. The pair is challenging the 136.00 area and below the next support emerges at 135.50. Below a horizontal line is seen around 134.60 and then appears the 200-day Simple Moving Average at 134.40.

No signs of consolidation are seen at the moment. Despite oversold reading in many technical indicators, the Momentum remains extremely negative. A rebound back above 137.00 could alleviate the bearish pressure. Above 137.70 the outlook for the Dollar could improve (or become less negative).

Technical levels

USD/JPY

Overview
Today last price	136.15
Today Daily Change	-1.93
Today Daily Change %	-1.40
Today daily open	138.08

Trends
Daily SMA20	141.42
Daily SMA50	144.46
Daily SMA100	141.22
Daily SMA200	134.32

Levels
Previous Daily High	139.9
Previous Daily Low	137.65
Previous Weekly High	142.25
Previous Weekly Low	138.05
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	138.51
Daily Fibonacci 61.8%	139.04
Daily Pivot Point S1	137.19
Daily Pivot Point S2	136.3
Daily Pivot Point S3	134.95
Daily Pivot Point R1	139.44
Daily Pivot Point R2	140.79
Daily Pivot Point R3	141.68

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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