USD/JPY Price Analysis: Bears dominate near monthly bottom, 106.00 in focus

USD/JPY breaks the below the mid-month low near 106.66 to test the lowest levels since June 24.
Lows marked in June and May months on the bears’ radars.
Bulls have multiple upside barriers to cross before taking control.

Anil Panchal FXStreet

USD/JPY stays depressed around 106.50, down 0.34% on a day, during the early Friday. The pair’s latest weakness takes clues from its break of two-week-old horizontal support around 106.60. Also likely to favor the sellers is the pair’s sustained trading under the key SMAs and resistance lines.

As a result, June month’s low of 106.07 and May’s bottom surrounding 106.00 grab the market’s attention during the pair’s further downside.

However, any more declines past-106.00 will be difficult and if portrayed will not hesitate to aim for March 06 trough close to 105.00.

Alternatively, a downward sloping trend line from July 01 and 50-day SMA, respectively around 107.30 and 107.45, guard the pair’s immediate upside.

Other than that, 61.8% Fibonacci retracement of February-March downside, at 108.00, followed by a 200-day SMA level of 108.35, will also challenge the optimists trying to confront a descending trend line from February 20, currently near 108.80.

USD/JPY daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	106.51
Today Daily Change	-0.36
Today Daily Change %	-0.34%
Today daily open	106.87

Trends
Daily SMA20	107.26
Daily SMA50	107.47
Daily SMA100	107.54
Daily SMA200	108.35

Levels
Previous Daily High	107.23
Previous Daily Low	106.71
Previous Weekly High	107.44
Previous Weekly Low	106.67
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	106.91
Daily Fibonacci 61.8%	107.03
Daily Pivot Point S1	106.64
Daily Pivot Point S2	106.42
Daily Pivot Point S3	106.13
Daily Pivot Point R1	107.16
Daily Pivot Point R2	107.45
Daily Pivot Point R3	107.68

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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