USD/JPY Price Analysis: Buyers loose steam and pullback from 24-year high

USD/JPY gained 1.80% in the week, extending its rally to the seventh consecutive week.
USD/JPY Price Analysis: Divergence between price action and RSI spurred a pullback, though a daily close below 137.70 would tumble the USD/JPY towards 134.26.

Christian Borjon Valencia FXStreet

The USD/JPY retreats from YTD highs at around 139.38, towards the middle of the 138.00-139.00 range on Friday, as Wall Street closes the week with gains between 1.83% and 2.15%, underpinned by upbeat data that could deter Federal Reserve members from hiking 100 bps in the July meeting.

The USD/JPY is trading at 138.48, down 0.33% after beginning Friday’s session around the 139.00 figure, nearly daily highs, to then slide to the daily’s central pivot point at 138.54, where the major stabilized, ahead into the weekend.

USD/JPY Price Analysis: Technical outlook

USD/JPY Daily Chart

The USD/JPY remains upward biased, but price action remains overextended. That means that USD/JPY still favors longs, but the Relative Strength Index (RSI) formed a negative divergence and exited from overbought conditions. That said, the USD/JPY could retrace from the YTD highs to its next support level at July 11 high-turned-support at 137.75.

If the above scenario plays out, the USD/JPY next support would be 137.00. The break below will expose the July 1 daily low at 134.74, followed by the June 23 low at 134.26. on the other hand, the USD/JPY’s first resistance would be the 139.00 figure. A breach of the latter would expose the YTD high at 139.38, followed by 140.00.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	138.48
Today Daily Change	-0.36
Today Daily Change %	-0.26
Today daily open	138.96

Trends
Daily SMA20	136.11
Daily SMA50	132.61
Daily SMA100	127.65
Daily SMA200	121

Levels
Previous Daily High	139.39
Previous Daily Low	137.28
Previous Weekly High	136.56
Previous Weekly Low	134.78
Previous Monthly High	137
Previous Monthly Low	128.65
Daily Fibonacci 38.2%	138.59
Daily Fibonacci 61.8%	138.09
Daily Pivot Point S1	137.7
Daily Pivot Point S2	136.44
Daily Pivot Point S3	135.59
Daily Pivot Point R1	139.81
Daily Pivot Point R2	140.65
Daily Pivot Point R3	141.92

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.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold weakens to three-month lows near $4,300

Gold faces increasing selling interest and approaches the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.