USD/JPY Price Analysis: Bounces off six-week low towards 133.00 but stays on bear’s radar

USD/JPY consolidates recent losses around the lowest levels since mid-June, prints four-day downtrend.
Oversold RSI, key Fibonacci retracement levels challenge bears.
Bulls need to cross 200-SMA to retake control.

Anil Panchal FXStreet

USD/JPY pares intraday losses during the four-day downtrend around 132.55-60. Even so, the yen pair holds onto the bearish breakdown amid Monday’s mid-Asian session.

Given the oversold RSI conditions, the quote’s corrective pullback towards the 38.2% Fibonacci retracement (Fibo.) of May 24 to July 14 upside, around 134.40, appears likely.

However, the previous support line from June 06 and the 200-SMA, respectively near 135.45 and 136.20, could challenge the USD/JPY buyers afterward.

It’s worth noting that a three-week-old horizontal resistance area near 137.45-50 appears the last defense for USD/JPY bears.

Meanwhile, the pair’s further downside could aim for the 50% and the 61.8% Fibonacci retracement support levels, around 132.85 and 131.30 in that order.

If at all the USD/JPY prices fail to rebound from 131.30, the 130.00 threshold could act as the additional filter to the south before directing the pair towards May’s low around 126.35.

Overall, USD/JPY remains bearish but a short-term corrective pullback can’t be ruled out.

USD/JPY: Four-hour chart

Trend: Bearish

Additional impotant levels

Overview
Today last price	132.58
Today Daily Change	-0.71
Today Daily Change %	-0.53%
Today daily open	133.29

Trends
Daily SMA20	136.7
Daily SMA50	134.26
Daily SMA100	129.98
Daily SMA200	122.27

Levels
Previous Daily High	134.68
Previous Daily Low	132.5
Previous Weekly High	137.46
Previous Weekly Low	132.5
Previous Monthly High	139.39
Previous Monthly Low	132.5
Daily Fibonacci 38.2%	133.33
Daily Fibonacci 61.8%	133.85
Daily Pivot Point S1	132.3
Daily Pivot Point S2	131.31
Daily Pivot Point S3	130.13
Daily Pivot Point R1	134.48
Daily Pivot Point R2	135.67
Daily Pivot Point R3	136.65

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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