USD/JPY Price Analysis: Bears keep the reins around mid-135.00s amid pre-Fed caution

USD/JPY prints mild losses as markets turn dicey ahead of the key events.
200-DMA, four-month-old support line defend buyers amid bullish MACD signals.
Sellers remain hopeful unless witnessing a clear break of 138.00 hurdle.

Anil Panchal FXStreet

USD/JPY struggles to defend the bounce off the 200-DMA as it seesaws around 135.50 during early Wednesday morning in Europe. In doing so, the Yen pair portrays the market’s cautious mood ahead of the key Federal Open Market Committee (FOMC) monetary policy meeting.

Also read: Fed December Preview: Will US Dollar selloff continue?

It’s worth noting that the looming bear cross on the MACD and multiple hurdles to the north keeps the USD/JPY bears hopeful.

That said, the quote dropped the most in two weeks while reversing from a one-month-old horizontal resistance area comprising a downward-sloping resistance line from October 21, the 21-DMA and multiple tops marked since November 15, around 137.70-138.00.

Hence, the USD/JPY pair’s weakness below the 200-DMA level surrounding 135.35 appears imminent. In that case, an ascending support line from early August, near 133.90, will gain the market’s attention.

Should the Yen pair breaks the 133.90 key support, it becomes vulnerable to challenging August month’s low near 130.40.

Alternatively, an upside clearance of the 138.00 hurdle could recall the USD/JPY bulls targeting the late November swing high of 142.25. During the run-up, the 140.00 threshold may act as an intermediate halt.

Overall, USD/JPY is likely to decline further but the downside appears limited.

USD/JPY: Daily chart

Trend: Limited downside expected

Additiona important levels

Overview
Today last price	135.5
Today Daily Change	-0.14
Today Daily Change %	-0.10%
Today daily open	135.64

Trends
Daily SMA20	138.14
Daily SMA50	143.04
Daily SMA100	141.09
Daily SMA200	135.26

Levels
Previous Daily High	137.97
Previous Daily Low	134.66
Previous Weekly High	137.86
Previous Weekly Low	134.13
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	135.92
Daily Fibonacci 61.8%	136.7
Daily Pivot Point S1	134.21
Daily Pivot Point S2	132.78
Daily Pivot Point S3	130.89
Daily Pivot Point R1	137.52
Daily Pivot Point R2	139.4
Daily Pivot Point R3	140.84

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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