USD/JPY Price Analysis: Ascending triangle, double tops tease bears around 132.00

USD/JPY bounces off intraday low, keeps extends pullback from five-week high.
RSI’s retreat from overbought conditions joins double top bearish formation to favor sellers.
200-HMA, triangle’s support line probe bears even as MACD signals hint at further downside.

Anil Panchal FXStreet

USD/JPY prints mild losses around the intraday low of 131.90 as the Japanese government officially nominates Kazuo Ueda to become the next Bank of Japan (BoJ) Governor on early Tuesday.

In doing so, the Yen pair extends the early-day pullback from the previous weekly top surrounding 132.90 and forms “Double tops”, a bearish chart pattern. Also justifying the USD/JPY pair’s latest weakness is the RSI (14) line that took a U-turn from the overbought conditions, not to forget the bearish MACD signals.

With this, the quote is likely to decline toward the 200-Hour Moving Average (HMA) level surrounding 131.00. However, an upward-sloping support line from February 02, forming part of the short-term triangle, could challenge the pair sellers around 130.30 afterward.

In a case where the USD/JPY drops below 130.30, the 130.00 round figure may act as a validation point for the quote’s further downside.

Alternatively, recovery moves remain elusive unless trading below the double tops surrounding 132.90. Also acting as the upside filter is the 133.00 round figure.

Following that, a run-up towards the previous monthly peak surrounding 134.80 can’t be ruled out.

USD/JPY: Hourly chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	132.07
Today Daily Change	-0.22
Today Daily Change %	-0.17%
Today daily open	132.29

Trends
Daily SMA20	130.27
Daily SMA50	132.18
Daily SMA100	138.08
Daily SMA200	136.84

Levels
Previous Daily High	132.91
Previous Daily Low	131.27
Previous Weekly High	132.91
Previous Weekly Low	129.81
Previous Monthly High	134.78
Previous Monthly Low	127.22
Daily Fibonacci 38.2%	132.29
Daily Fibonacci 61.8%	131.9
Daily Pivot Point S1	131.41
Daily Pivot Point S2	130.52
Daily Pivot Point S3	129.77
Daily Pivot Point R1	133.04
Daily Pivot Point R2	133.8
Daily Pivot Point R3	134.68

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.

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