USD/JPY Price Analysis: Bears keep their eye on 109.50

USD/JPY pares all the previous day’s gain on Thursday.
More downside for the pair on the cards, if price breaches the Head & Shoulder formation neckline.
Momentum Oscillators warn caution for any aggressive directional bets.

Rekha Chauhan Independent Analyst

USD/JPY remains under pressure in the European trading hours. The pair hinges near the daily support level of around 109.70.

At the time of writing, USD/JPY is trading at 109.77, down 0.14% so far.

USD/JPY daily chart

On the daily chart, the USD/JPY pair has formed Head& Shoulder (H&S) formation, which is a bearish reversal technical pattern.

If USD/JPY breaks the neckline of the mentioned technical pattern, it would result accelerate the selling toward the 109.50 horizontal support level.

The Moving Average Convergence Divergence (MACD) indicator trades just below the trendline with a neutral stance. Any downtick in the MACD would bring the low of July 20 at 109.32 back into action.

Next, the USD/JPY bears would effort to capture the 109.00 horizontal support level.

Alternatively, If price sustained the neckline of the H&S formation, it could crawl back to the 110.00 horizontal resistance level followed by the 110.40 horizontal resistance level.

The USD/JPY pair will make the next move toward July 26 high in the vicinity of the 110.60 area.

USD/JPY additional levels

USD/JPY

Overview
Today last price	109.83
Today Daily Change	-0.09
Today Daily Change %	-0.08
Today daily open	109.92

Trends
Daily SMA20	110.29
Daily SMA50	110.05
Daily SMA100	109.58
Daily SMA200	107.09

Levels
Previous Daily High	110.29
Previous Daily Low	109.74
Previous Weekly High	110.6
Previous Weekly Low	109.06
Previous Monthly High	111.12
Previous Monthly Low	109.19
Daily Fibonacci 38.2%	110.08
Daily Fibonacci 61.8%	109.95
Daily Pivot Point S1	109.68
Daily Pivot Point S2	109.44
Daily Pivot Point S3	109.13
Daily Pivot Point R1	110.22
Daily Pivot Point R2	110.53
Daily Pivot Point R3	110.77

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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