USD/JPY Price Analysis: Drops the most in three weeks as bears eye 115.50

USD/JPY remains on the back foot around intraday low.
RSI pullback from overbought region adds to the bearish bias.
November’s top lure short-term sellers, 11-week-old resistance line challenge buyers.

Anil Panchal FXStreet

USD/JPY stays pressured around 115.85 while printing the biggest daily losses since mid-December during early Thursday.

The yen pair’s latest weakness could be linked to the earlier pullback from a multi-day-old resistance line as well as the RSI decline from the overbought region. As a result, further losses by the pair can’t be ruled out.

The same direct USD/JPY sellers towards November’s high near 115.50. However, any further downside will be challenged by an ascending support line from December 17 and 50-SMA, respectively around 115.40 and 115.25.

Meanwhile, the corrective pullback may initially aim for the 116.00 threshold before the 116.25 hurdle. In a case where USD/JPY bulls keep reins past 116.25, an upward sloping trend line from October 20, around 116.40, will be in focus.

Overall, USD/JPY prices are likely to witness further losses but a reversal of the current bullish trend is off the table, at least for now.

USD/JPY: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	115.84
Today Daily Change	-0.28
Today Daily Change %	-0.24%
Today daily open	116.12

Trends
Daily SMA20	114.43
Daily SMA50	114.09
Daily SMA100	112.66
Daily SMA200	111.16

Levels
Previous Daily High	116.24
Previous Daily Low	115.62
Previous Weekly High	115.21
Previous Weekly Low	114.45
Previous Monthly High	115.21
Previous Monthly Low	112.56
Daily Fibonacci 38.2%	116.01
Daily Fibonacci 61.8%	115.86
Daily Pivot Point S1	115.75
Daily Pivot Point S2	115.38
Daily Pivot Point S3	115.13
Daily Pivot Point R1	116.37
Daily Pivot Point R2	116.62
Daily Pivot Point R3	116.99

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.

EUR/USD tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.