USD/JPY Price Analysis: Further recovery eyes 14-month-old trendline

USD/JPY manages to bounce off a nearly four-year low.
Oversold RSI, risk reset seem to favor further pullbacks.
The falling trend line from January 2019 offers the near-term key upside barrier.

Anil Panchal FXStreet

USD/JPY recovers 1.0% of the previous day’s flash-crash losses while taking the bids to 103.40 during early Tuesday. In doing so, the quote bounces off the lowest since late 2016 amid oversold RSI conditions.

While odds are high for the pair’s further pullback towards 104.00, a downward sloping trend line since January 2019, at 104.55, seems to challenge the buyers afterward.

Should there be an additional recovery past-104.55, October 2019 low surrounding 106.50 can flash on the bulls’ radars.

Alternatively, the intra-day low near 102.00, followed by Monday’s bottom of 101.18, can offer rests to the short-term sellers.

Though, any downside below 101.18 might not refrain to challenge the 100.00 psychological magnet.

USD/JPY daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	103.3
Today Daily Change	0.93
Today Daily Change %	0.91%
Today daily open	102.37

Trends
Daily SMA20	109.01
Daily SMA50	109.2
Daily SMA100	109.08
Daily SMA200	108.32

Levels
Previous Daily High	105.37
Previous Daily Low	101.18
Previous Weekly High	108.58
Previous Weekly Low	105
Previous Monthly High	112.23
Previous Monthly Low	107.51
Daily Fibonacci 38.2%	102.78
Daily Fibonacci 61.8%	103.77
Daily Pivot Point S1	100.58
Daily Pivot Point S2	98.79
Daily Pivot Point S3	96.39
Daily Pivot Point R1	104.77
Daily Pivot Point R2	107.17
Daily Pivot Point R3	108.96

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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