USD/JPY Price Analysis: Bears keep the reins near 134.50, further downside appears limited

USD/JPY prods short-term key support confluence during three-day downtrend, stays pressured at weekly low.
21-day EMA, five-week-old ascending trend line restricts immediate downside.
Convergence of 50-day EMA, 200-day EMA, appears a tough nut to crack for Yen pair sellers.
Bulls need validation from 135.25 to convince short-term buyers.

Anil Panchal FXStreet

USD/JPY holds lower ground near the weekly bottom surrounding 134.50 during early Thursday. In doing so, the Yen pair drops for the third consecutive day while proding the 21-day Exponential Moving Average (EMA) and an upward-sloping support line from March 24, near 134.40-50.

It’s worth noting that the Yen pair’s repeated failures to provide a daily closing beyond 138.00 join the pair’s pullback moves that broke the previous support zone around 135.25-15, comprising levels marked since mid-February, to keep the USD/JPY bears hopeful.

On the same line, the looming bear cross on the MACD adds strength to the downside bias.

However, the 21-day EMA and a five-week-old ascending support line prod the Yen pair sellers near 134.50-40 support confluence.

Following that, a convergence of the 50-day EMA and 200-day EMA, near 133.85, will be key to watch for the USD/JPY pair as it holds the gate for the bear’s welcome.

Meanwhile, USD/JPY buyers need validation from the immediate multi-day resistance zone of around 135.15-25 to convince short-term bulls.

Even so, multiple hurdles near 136.70, the 137.00 round figure and the 138.00 threshold can prod the USD/JPY buyers afterward before giving them control.

USD/JPY: Daily chart

Trend: Corrective bounce expected

Additional important levels

Overview
Today last price	134.47
Today Daily Change	-0.23
Today Daily Change %	-0.17%
Today daily open	134.7

Trends
Daily SMA20	134.16
Daily SMA50	133.92
Daily SMA100	132.89
Daily SMA200	136.98

Levels
Previous Daily High	136.63
Previous Daily Low	134.69
Previous Weekly High	136.56
Previous Weekly Low	133.01
Previous Monthly High	136.56
Previous Monthly Low	130.63
Daily Fibonacci 38.2%	135.43
Daily Fibonacci 61.8%	135.89
Daily Pivot Point S1	134.05
Daily Pivot Point S2	133.4
Daily Pivot Point S3	132.11
Daily Pivot Point R1	135.99
Daily Pivot Point R2	137.28
Daily Pivot Point R3	137.93

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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