USD/JPY Price Analysis: Bullish harami looms, with bulls targeting 131.50

USD/JPY remains downtrend but is about to form a bullish harami candle pattern, suggesting an upward correction on the cards.
USD/JPY Price Analysis: Once it clears 129.50, it could rally towards 131.57 before turning neutral.

Christian Borjon Valencia FXStreet

USD/JPY slumps in a choppy New York trading session and edges beneath 130.00 after a round of US economic data, suggesting the US Federal Reserve (Fed) could begin to hike rates in 25 bps sizes. Therefore, the Japanese Yen (JPY) strengthened, so the USD/JPY is down 0.24%. At the time of writing, the USD/JPY is trading at 129.92.

USD/JPY Price Analysis: Technical outlook

The USD/JPY remains downward biased as the pair has remained below the 20-day Exponential Moving Average (EMA) at 130.60. Friday’s price action remains contained within the boundaries of Thursday’s high and low, opening the door for a bullish harami candlestick formation, also known as an inside day, in the regular bar chart jargon. Therefore, the USD/JPY could print a leg-up before resuming its downtrend.

Hence, the USD/JPY next resistance would be 130.00, followed by the confluence of the 20-day EMA and a downslope trendline around 130.60, which, once cleared, might send the USD/JPY climbing towards the January 24 swing high at 131.11. Break above will expose the January 18 high of 131.57.

As an alternate scenario, the USD/JPY could fall towards 129.49, January’s 27 low. Once broken, the next support would be the weekly low of 129.02, followed by the YTD low at 127.21.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	129.92
Today Daily Change	-0.33
Today Daily Change %	-0.25
Today daily open	130.25

Trends
Daily SMA20	130.45
Daily SMA50	134.04
Daily SMA100	139.59
Daily SMA200	136.76

Levels
Previous Daily High	130.62
Previous Daily Low	129.02
Previous Weekly High	131.58
Previous Weekly Low	127.22
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	130.01
Daily Fibonacci 61.8%	129.63
Daily Pivot Point S1	129.31
Daily Pivot Point S2	128.37
Daily Pivot Point S3	127.71
Daily Pivot Point R1	130.9
Daily Pivot Point R2	131.56
Daily Pivot Point R3	132.5

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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