USD/JPY Price Analysis: Bears smash weekly support line to aim for further downside below 134.00
- USD/JPY takes offers to refresh intraday low, snaps six-day uptrend.
- Failure to stay beyond 200-HMA joins RSI retreat to break the key support line from December 20.
- 100-HMA could probe the bears before directing them to the monthly low.
- Buyers need validation from the recent swing high surrounding 134.50 to retake control.
USD/JPY stands on the slippery ground near 133.65 as it renews its intraday low during the first negative daily performance in seven.
In doing so, the Yen pair breaks the seven-day-old ascending trend line to welcome the bears.
It should be noted that the multiple failures to stay beyond the 200-HMA join the RSI (14) pullback from the overbought territory to allow the USD/JPY pair to remain on the bear’s radar.
However, the 100-HMA support, around 133.00 by the press time, challenges the USD/JPY pair’s immediate downside, a break of which could quickly drag the quote towards the multi-month low marked earlier in December around 130.60-55.
In a case where the USD/JPY pair remains weak past 130.55, the August monthly low near 130.40 and the 130.00 round figure could probe the quote’s further downside.
Alternatively, a convergence of the 200-HMA and the support-turned-resistance line, around 133.95, quickly followed by the 134.00 round figure, guards the USD/JPY pair’s immediate upside.
Following that, the recent top surrounding 134.50 to act as the last defense of USD/JPY bears.
USD/JPY: Hourly chart
Trend: Further downside expected
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.
