USD/JPY Price Analysis: Bounces off a three-month low, eyeing 139.00

USD/JPY tumbled to a fresh three-month-low but rebounded towards 138.70s.
A double bottom in the USD/JPY daily chart targets a rise to 145.00.
USD/JPY Price Analysis: Break above 139.00 will exacerbate a rally to 140.00.

Christian Borjon Valencia FXStreet

The USD/JPY is falling in the North American session, comfortable below the 139.00 figure after hitting a daily low of 137.49, reaching a fresh three-month low on a soft US Dollar (USD). At the time of writing, the USD/JPY is trading at 138.80, below its opening price by 0.25%.

USD/JPY Price Analysis: Technical outlook

After testing during the last month, the 137.00 mark, the USD/JPY rebounded strongly, reclaiming the 138.00 figure, signaling that buyers stepped in. A possible formation of a “double bottom” chart pattern around 137.50/60 could open the door for a recovery, which could target the 50-day Exponential Moving Average (EMA) at 144.67, as the initial target, on its way to 147.00. Notably, the Relative Strength Index (RSI) remained unchanged as the USD/JPY price action dived toward a multi-month low. Hence, a positive divergence between RSI and price action could pave the way for further USD/JPY upside.

If that scenario continues, the USD/JPY first resistance would be the 140.00 mark. The break above will expose the 100-day EMA at 141.17, followed by the 142.00 figure, and the 50-day EMA at 144.67. In an alternate scenario, the USD/JPY first support would be 138.00. Once cleared, the next support would be the multi-month low around 137.49, ahead of an upslope trendline around 137.00.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	138.77
Today Daily Change	-0.27
Today Daily Change %	-0.19
Today daily open	139.04

Trends
Daily SMA20	142.87
Daily SMA50	144.76
Daily SMA100	141.17
Daily SMA200	133.96

Levels
Previous Daily High	139.6
Previous Daily Low	138.37
Previous Weekly High	142.25
Previous Weekly Low	138.05
Previous Monthly High	151.94
Previous Monthly Low	143.53
Daily Fibonacci 38.2%	139.13
Daily Fibonacci 61.8%	138.84
Daily Pivot Point S1	138.41
Daily Pivot Point S2	137.78
Daily Pivot Point S3	137.19
Daily Pivot Point R1	139.63
Daily Pivot Point R2	140.22
Daily Pivot Point R3	140.85

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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