USD/JPY Price Analysis: 100-DMA challenges corrective pullback from weekly low

USD/JPY consolidates the heaviest daily fall in a month.
Downside break of five-week-old trend line keeps sellers hopeful.
Rising support line from late April becomes the key for a trend change.

Anil Panchal FXStreet

USD/JPY licks its wounds around 109.75, up 0.07% as Tokyo opens for Friday.

The yen pair dropped the most since August 13 the previous day while breaking one-month-old support, now resistance. The declines refreshed weekly low before the latest rebound from 109.62.

However, the upbeat Momentum line and 100-SMA, not to forget the trend line breakdown, keeps USD/JPY sellers hopeful in aiming the ascending support line from April 23, near 109.15.

However, 50% Fibonacci retracement of April-July upside, around 109.55, acts as a filter to the south-run.

Meanwhile, recovery moves beyond the 100-DMA level of 109.80 need to regain above the previous support line, at 109.90.

Even so, USD/JPY bulls remain skeptical unless crossing the weekly top of 110.45, which in turn will help buyers to challenge the last month’s peak of 110.80.

USD/JPY: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	109.74
Today Daily Change	0.03
Today Daily Change %	0.03%
Today daily open	109.71

Trends
Daily SMA20	109.83
Daily SMA50	109.99
Daily SMA100	109.78
Daily SMA200	107.93

Levels
Previous Daily High	110.29
Previous Daily Low	109.62
Previous Weekly High	110.42
Previous Weekly Low	109.59
Previous Monthly High	110.8
Previous Monthly Low	108.72
Daily Fibonacci 38.2%	109.88
Daily Fibonacci 61.8%	110.03
Daily Pivot Point S1	109.46
Daily Pivot Point S2	109.21
Daily Pivot Point S3	108.79
Daily Pivot Point R1	110.12
Daily Pivot Point R2	110.54
Daily Pivot Point R3	110.79

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold holds gains near $5,000 as China's gold buying drives demand

Gold price clings to the latest uptick near $5,000 in Asian trading on Monday. The precious metal holds its recovery amid a weaker US Dollar and rising demand from the Chinese central bank. The delayed release of the US employment report for January will be in the spotlight later this week.

Bitcoin Weekly Forecast: The worst may be behind us

Bitcoin price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.