USD/JPY Price Analysis: Finds some support near 23.6% Fibo., rebounds to 144.00 mark

USD/JPY plummets to over a one-week low on Thursday, albeit lacks follow-through selling.
The sharp intraday slide stalls near the 23.6% Fibo level., warranting some caution for bears.
A sustained strength beyond 145.00 is needed to support prospects for any further move-up.

Haresh Menghani FXStreet

The USD/JPY pair comes under intense selling pressure on Thursday and dives to a one-and-half-week low during the early part of the European session. Spot prices, however, manage to rebound a few pips in the last hour and currently trade around the 144.00 round-figure mark, still down nearly 0.50% for the day.

Fears of a possible intervention by Japanese authorities to prop up the domestic currency, along with the risk-off impulse, provide a goodish lift to the safe-haven Japanese Yen (JYP) and prompt aggressive selling around the USD/JPY pair. Apart from this, a modest US Dollar (USD) pullback from the weekly top further contributes to the offered tone.

That said, a big divergence in the monetary policy stance adopted by the Bank of Japan (BoJ) and other major central banks, including the Federal Reserve (Fed), caps any further gains for the JPY. Apart from this, a further rise in the US Treasury bond yields acts as a tailwind for the Greenback and limits losses for the USD/JPY pair, at least for now.

From a technical perspective, the sharp intraday slide finds support near the 143.60 region, or the 23.6% Fibonacci retracement level of the June rally, which should now act as a pivotal point. Some follow-through selling will validate a breakdown through a short-term trading range held over the past week or so and pave the way for further losses.

The USD/JPY pair might then accelerate the corrective decline towards testing the 100-period Simple Moving Average (SMA), currently pegged around the 143.00 round figure. This is closely followed by the 142.70-142.65 support or the 38.2% Fibo. level, which if broken decisively will suggest that spot prices have topped out near the 145.00 mark.

On the flip side, any recovery back above the trading range support breakpoint, around the 144.15-144.20 area, is likely to confront some resistance near the 144.70-144.75 supply zone. This is followed by the critical 145.00 psychological mark, above which the USD/JPY pair might aim to surpass the 145.35-145.40 barrier and reclaim the 146.00 round figure.

USD/JPY 4-hour chart

Key levels to watch

USD/JPY

Overview
Today last price	143.91
Today Daily Change	-0.75
Today Daily Change %	-0.52
Today daily open	144.66

Trends
Daily SMA20	142.37
Daily SMA50	139.44
Daily SMA100	136.62
Daily SMA200	137.24

Levels
Previous Daily High	144.74
Previous Daily Low	144.08
Previous Weekly High	145.07
Previous Weekly Low	142.94
Previous Monthly High	145.07
Previous Monthly Low	138.43
Daily Fibonacci 38.2%	144.49
Daily Fibonacci 61.8%	144.33
Daily Pivot Point S1	144.25
Daily Pivot Point S2	143.84
Daily Pivot Point S3	143.59
Daily Pivot Point R1	144.9
Daily Pivot Point R2	145.15
Daily Pivot Point R3	145.56

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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