USD/JPY recovering but faces resistance below 134.00

US dollar gains momentum at the end of the week.
USD/JPY still down for the week but above critical support.
US Consumer Confidence rises above expectations in August.

Matías Salord FXStreet

The USD/JPY pair is up on Friday, supported by a stronger US dollar against G10 currencies – it is about to end the week moving in a range between 133.90 and 133.45.

The yen gained momentum during the American session amid a mixed performance in Wall Street. The dollar remained in positive, after Thursday’s surge in Treasury yields and also supported by economic data.

Data released on Friday showed US Consumer Confidence recovered in August and this supported USD/JPY. University of Michigan’s main index rose to 55.1, above the 51.1 of July and surpassing the 52.5 of market consensus. The report also showed a decline in 1-year inflation expectations.

Down for the week but off lows

Despite Friday’s gains, USD/JPY is about to end the week in negative territory, although far from the low. The weekly chart shows the uptrend still in place, but with no momentum.

The correction from the multi-decade high near 140.00, reached about a month ago, continues to find support around 131.00. The 131.00 zone is a critical horizontal support area and also contains the 21-day Simple Moving Average. A weekly close below would open the doors do more losses.

USD/JPY weekly chart

USD/JPY

Overview
Today last price	133.63
Today Daily Change	0.60
Today Daily Change %	0.45
Today daily open	133.03

Trends
Daily SMA20	135.35
Daily SMA50	135.27
Daily SMA100	131.24
Daily SMA200	123.16

Levels
Previous Daily High	133.31
Previous Daily Low	131.73
Previous Weekly High	135.5
Previous Weekly Low	130.4
Previous Monthly High	139.39
Previous Monthly Low	132.5
Daily Fibonacci 38.2%	132.71
Daily Fibonacci 61.8%	132.34
Daily Pivot Point S1	132.07
Daily Pivot Point S2	131.11
Daily Pivot Point S3	130.49
Daily Pivot Point R1	133.65
Daily Pivot Point R2	134.27
Daily Pivot Point R3	135.23

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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