USD/JPY Price Analysis: Bears flex muscles with eyes on 130.60

USD/JPY retreats from one-week high to snap three-day uptrend.
Downside break of weekly support line adds strength to bearish bias.
100, 200 EMAs add to the upside filters.

Anil Panchal FXStreet

USD/JPY remains depressed around 132.90 as it prints the first daily loss in four during early Tuesday morning in Europe. In doing so, the Yen pair justifies the downside break of a one-wee-old ascending trend line, as well as a U-turn from the 100-hour Exponential Moving Average (EMA).

The pullback move also takes clues from the RSI (14) retreat, as well as an absence of the oversold RSI line.

That said, the USD/JPY price aim for the 23.6% Fibonacci retracement level of December 15-20 downside, near 132.30.

Following that, an upward-sloping support line from the last Wednesday, near the 132.00 round figure could test the USD/JPY bears before directing them to the recently flashed multi-month low near 130.60.

In a case where the USD/JPY pair drops below 130.60, the August 2022 low near 130.40 and the 130.00 psychological magnet could act as the last defense of the buyers.

Alternatively, the support-turned-resistance line and the 100-EMA, respectively around 132.95 and 133.05, could restrict immediate USD/JPY recovery before highlighting the 200-EMA level of 134.00.

Should the USD/JPY bulls keep the reins past 134.00, the December 19 swing low near 135.80 will gain the market’s attention.

It should be noted that the 50% and 61.8% Fibonacci retracement levels, respectively near 134.35 and 135.25, could probe the USD/JPY bulls during the expected rise.

USD/JPY: Hourly chart

Trend: Further downside expected

additional important levels

Overview
Today last price	132.85
Today Daily Change	-0.07
Today Daily Change %	-0.05%
Today daily open	132.92

Trends
Daily SMA20	135.62
Daily SMA50	140.86
Daily SMA100	141.12
Daily SMA200	136

Levels
Previous Daily High	132.92
Previous Daily Low	132.92
Previous Weekly High	137.48
Previous Weekly Low	130.57
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	132.92
Daily Fibonacci 61.8%	132.92
Daily Pivot Point S1	132.92
Daily Pivot Point S2	132.92
Daily Pivot Point S3	132.92
Daily Pivot Point R1	132.92
Daily Pivot Point R2	132.92
Daily Pivot Point R3	132.92

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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