USD/JPY Price Analysis: Bounces-off critical support on 106.00

USD/JPY closes the hour below 100-HMA for the first since Sept 2.
The spot bounces-off key support while within a symmetrical triangle.
Sentiment on Wall Street and dollar dynamics eyed for fresh direction.

Dhwani Mehta FXStreet

USD/JPY holds the lower ground on the 106 level so far this Tuesday, having bounced-off a drop to the critical support of the rising trendline support at 106.20.

Despite the bounce, the downside appears more compelling, as the price gave an hourly closing below the 100-hourly Simple Moving Average (HMA) for the first time since September 2.

An hourly closing below the said trendline support would confirm a symmetrical triangle breakdown. A sharp drop could be triggered, with the next downside target seen at the horizontal 200-HMA at 106.08.

The hourly 14-day Relative Strength Index (RSI) has inched upwards, still trades below the midline in the bearish territory.

To the upside, the confluence of the 21 and 50-HMAs at 106.27 will likely limit the immediate bounce.

Further north, the daily high of 106.31 will be next in focus. Acceptance above the 106.50 level could negate the near-term bearish bias.

USD/JPY: Hourly chart

USD/JPY: Additional levels

USD/JPY

Overview
Today last price	106.25
Today Daily Change	-0.03
Today Daily Change %	-0.03
Today daily open	106.27

Trends
Daily SMA20	106.15
Daily SMA50	106.41
Daily SMA100	106.9
Daily SMA200	107.89

Levels
Previous Daily High	106.38
Previous Daily Low	106.13
Previous Weekly High	106.55
Previous Weekly Low	105.29
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	106.29
Daily Fibonacci 61.8%	106.23
Daily Pivot Point S1	106.14
Daily Pivot Point S2	106.01
Daily Pivot Point S3	105.89
Daily Pivot Point R1	106.39
Daily Pivot Point R2	106.51
Daily Pivot Point R3	106.64

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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