USD/JPY Price Analysis: Drops back below 135.00 but sellers have a bumpy road

USD/JPY holds lower ground after rising for four consecutive weeks.
Two-day-old ascending trend channel, monthly support line challenge bears.
Bulls need a clear break of 100-HMA to retake control.

Anil Panchal FXStreet

USD/JPY takes offers to refresh intraday low around 134.50 following a four-week uptrend. In doing so, the yen pair extends its pullback from a short-term bullish channel’s resistance line, as well as a downside break of the 100-HMA.

Also adding to the bearish bias are the downbeat MACD signals and a weekly falling trend line.

That said, the bottom line of the aforementioned channel from Thursday, near 134.40, restricts the immediate downside of the yen pair before directing it towards an upward sloping support line from May 27, near 133.90 by the press time.

In a case where the quote drops below 133.90, it becomes vulnerable to fall towards the mid-month low near 131.50.

On the contrary, the weekly resistance line near 135.25 and the stated channel’s upper line, close to 135.40 by the press time, limit the short-term recovery of the USD/JPY pair.

Following that, the 100-HMA level of 135.55 challenges the bulls before directing them to the monthly peak near 136.70.

Overall, USD/JPY is likely to witness limited downside as bulls take a breather.

USD/JPY: Hourly chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	134.65
Today Daily Change	-0.61
Today Daily Change %	-0.45%
Today daily open	135.26

Trends
Daily SMA20	133.19
Daily SMA50	130.52
Daily SMA100	124.7
Daily SMA200	119.21

Levels
Previous Daily High	135.4
Previous Daily Low	134.35
Previous Weekly High	136.72
Previous Weekly Low	134.26
Previous Monthly High	131.35
Previous Monthly Low	126.36
Daily Fibonacci 38.2%	135
Daily Fibonacci 61.8%	134.75
Daily Pivot Point S1	134.61
Daily Pivot Point S2	133.96
Daily Pivot Point S3	133.57
Daily Pivot Point R1	135.66
Daily Pivot Point R2	136.05
Daily Pivot Point R3	136.7

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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