USD/JPY Price Analysis: Lack of a catalyst keeps the pair sideways in the 135.00-136.00 area
- The USD/JPY has been trading in a choppy 100 pip range for the last five days.
- The major seesawed spurred by the assassination of Japan’s ex-PM Abe and upbeat US economic data.
- USD/JPY Price Analysis: Range-bound, but the RSI’s aiming lower and USD/JPY uptrend overextended, might pave the way for further downside.
USD/JPY is subdued as the North American session winds down, consolidating in the 135.00-136.00 range amidst the lack of a catalyst that could trigger an upward/downward break of the previously-mentioned area after news of the assassination of the Japanese ex-Prime Minister Shinzo Abe.
The USD/JPY began the last day of the week trading around 136.00, followed by an aggressive fall toward 135.32 on the breaking news of the attack on Shinzo Abe. However, favorable US employment data lifted the major towards the weekly high around 136.56 before retreating toward current levels. At the time of writing, the USD/JPY is trading at 136.04.
USD/JPY Daily chart
The USD/JPY daily chart illustrates that the price is overextended and the uptrend has lost steam. However, USDJPY sellers’ failure to break below the 20-day EMA at 135.35 has exposed the pair to some upside pressure, but the Relative Strenght Index (RSI) at 41.89 begins to aim downwards, meaning that a pullback might be on the cards.
That said, the USD/JPY first support would be136.00. Break below will expose the 20-day EMA, followed by the June 23 daily low at 134.26, followed by 50-day EMA at 131.95.
USD/JPY Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
