USD/JPY Price Analysis: Gearing up for another break of 131.00 on impending bear cross


  • USD/JPY is back in the red after seeing a dead cat bounce on Wednesday.
  • US Treasury yields retreat, dragging USD/JPY lower amid upbeat mood.  
  • Impending bull cross on the daily chart leaves the pair exposed to 131.00.

USD/JPY is returning to the red zone below the 132.00 level early Thursday, fading a dead cat bounce seen on Wednesday. The renewed weakness in the US Dollar alongside the Treasury bond yields is weighing down on the currency pair.

The US Dollar is on a slippery slope, courtesy of the ‘Santa rally’ that kicked off on Wall Street, which is extending into the Asian markets. Meanwhile, the Yen resume its upward momentum, as the Japanese bond yields shifted into a new higher range.

The Bank of Japan (BoJ) announced an unscheduled bond-buying operation for the second straight day, which has failed to have any material impact on the USD/JPY pair so far.

Markets look past the upbeat US CB Consumer Confidence data, as all eyes now remain on the final revision to the US Q3 GDP, weekly Jobless Claims, Japanese inflation and BoJ minutes due on the cards in the balance of this week.

From a short-term technical perspective, USD/JPY is consolidating the downside, awaiting a fresh catalyst for a fresh leg lower.

The bearish 21-Daily Moving Average (DMA) is on the verge of cutting the mildly bullish 200DMA from above. A bull cross confirmation is what is needed for bears to accelerate control.

The 14-day Relative Strength Index (RSI) is sitting just above the oversold territory, suggesting that there is more room for a decline.

Immediate support awaits at the 131.00 round figure. Sellers will then target the four-month low of 130.57.

USD/JPY: Daily chart

On the flip side, any recovery attempts will need to find acceptance above the 132.00 hurdle on a sustained basis. Recapturing Wednesday’s high at 132.53 is critical to unleashing the additional recovery toward the 133.00 barrier.

USD/JPY: Additional technical levels

USD/JPY

Overview
Today last price 131.88
Today Daily Change -0.45
Today Daily Change % -0.34
Today daily open 132.35
 
Trends
Daily SMA20 136.53
Daily SMA50 141.79
Daily SMA100 141.17
Daily SMA200 135.79
 
Levels
Previous Daily High 132.53
Previous Daily Low 131.49
Previous Weekly High 138.18
Previous Weekly Low 134.52
Previous Monthly High 148.82
Previous Monthly Low 137.5
Daily Fibonacci 38.2% 132.14
Daily Fibonacci 61.8% 131.89
Daily Pivot Point S1 131.72
Daily Pivot Point S2 131.08
Daily Pivot Point S3 130.68
Daily Pivot Point R1 132.76
Daily Pivot Point R2 133.17
Daily Pivot Point R3 133.8

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats below 1.0650 on renewed USD strength

EUR/USD retreats below 1.0650 on renewed USD strength

EUR/USD came under modest bearish pressure and declined below 1.0650 in the European session on Monday. The renewed US Dollar strength doesn't allow the pair to gain traction as focus shifts to ECB President Lagarde's speech.

EUR/USD News

GBP/USD drops to fresh five-month lows, closes in on 1.2300

GBP/USD drops to fresh five-month lows, closes in on 1.2300

GBP/USD extends its slide toward 1.2300 and trades at a fresh five-month low in the European session on Monday. The cautious market stance helps the US Dollar stay resilient against its rivals and weighs on the pair ahead of Tuesday's key PMI data.

GBP/USD News

Gold drops to one-week low below $2,350

Gold drops to one-week low below $2,350

Gold stays under heavy bearish pressure and trades at its lowest level in a week below $2,350. The benchmark 10-year US Treasury bond yield stays in positive territory above 4.6%, forcing XAU/USD to stay on the back foot.

Gold News

XRP jumps above $0.50 as Ripple is set to file opposition brief in SEC lawsuit

XRP jumps above $0.50 as Ripple is set to file opposition brief in SEC lawsuit

XRP price climbed to a high of $0.54 on Monday, hours before Ripple files its response to the Securities and Exchange Commission (SEC) remedies-related opening brief. 

Read more

All eyes on Lagarde – Stock markets remain in correction/sell-on-upticksmode

All eyes on Lagarde – Stock markets remain in correction/sell-on-upticksmode

Today’s eco calendar won’t move markets with EMU April consumer confidence the sole important release. ECB President Lagarde gives a lecture at Yale university, but she’ll stick to previous comments.

Read more

Forex MAJORS

Cryptocurrencies

Signatures