USD/JPY Price Analysis: Back near daily lows, below 106.00 mark

USD/JPY struggled to build on the attempted recovery to mid-107.00s.
The pair has now retreated back to the lower end of its daily trading range.
Bears to wait for a break below 38.2% Fibo./100-EMA confluence support.

Haresh Menghani FXStreet

The USD/JPY pair failed to capitalize on its attempted intraday bounce and retreated back below the 106.00 round-figure mark during the early European session.

The pair has now moved back closer to the lower end of its daily trading range, which represents 38.2% Fibonacci level of last week's 101.18-108.51 strong recovery.

The mentioned support coincides with 100-hour EMA, which if broken might be seen as a key trigger for bearish traders amid the prevailing risk-off environment.

The negative outlook is reinforced by the fact that oscillators on the daily chart maintained their bearish bias and have again started gaining drifting lower on the 1-hourly chart.

A sustained breakthrough the mentioned confluence support will reaffirm the bearish set-up and set the stage for the resumption of the pair’s recent downward trajectory.

The pair then might accelerate the fall back towards challenging the key 105.00 psychological mark before eventually dropping to the next support near the 104.60-50 region.

On the flip side, the 23.6% Fibo. level, around the 106.85 region, might now act as immediate resistance and keep a lid on any attempted recovery move.

A convincing break through should prompt some short-covering move and lift the pair back towards the daily swing high resistance near the 107.50-60 region.

USD/JPY 1-hourly chart

Technical levels to watch

USD/JPY

Overview
Today last price	105.96
Today Daily Change	-2.00
Today Daily Change %	-1.85
Today daily open	107.96

Trends
Daily SMA20	108.18
Daily SMA50	108.97
Daily SMA100	108.96
Daily SMA200	108.27

Levels
Previous Daily High	108.51
Previous Daily Low	104.51
Previous Weekly High	108.51
Previous Weekly Low	101.18
Previous Monthly High	112.23
Previous Monthly Low	107.51
Daily Fibonacci 38.2%	106.98
Daily Fibonacci 61.8%	106.03
Daily Pivot Point S1	105.47
Daily Pivot Point S2	102.99
Daily Pivot Point S3	101.47
Daily Pivot Point R1	109.47
Daily Pivot Point R2	110.99
Daily Pivot Point R3	113.47

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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