USD/JPY Price Analysis: More downside seems favored as US yields extend losses

USD/JPY is struggling to extend its recovery above 131.00.
A spree of lower highs in the asset indicates a continuation of the downside trend.
Downward-sloping 20-and 50-EMAs add to the downside filters.

Sagar Dua FXStreet

The USD/JPY pair is struggling to extend its recovery above 131.00 in the early European session. Earlier, the asset rebounded after sensing buying interest around 129.50 as investors underpinned the US Dollar amid a risk-off market mood.

The US Dollar Index (DXY) is displaying a subdued performance as investors are awaiting a fresh trigger for a decisive move.

On a four-hour scale, one could easily identify the continuation of the downtrend and the absence of any recovery move from the US Dollar. The Relative Strength Index (RSI) (14) is constantly failing to overstep 60.00, which indicates the presence of a ‘sell on rise’ context in the trading activity.

Apart from that, downward-sloping 20-and 50-period Exponential Moving Averages (EMAs) at 131.15 and 132.15 indicates more weakness ahead.

It would be prudent to wait for a pullback move to near the 50-period EMA around 132.15 for building a short position, which will drag the asset toward the psychological resistance at 130.00 followed by May 4 low at 128.63.

On the flip side, a rebound move above December 29 high at 134.50 will drive the asset towards December 7 low around 134.00. A breach above the latter will send the asset towards December 20 high at 137.47.

USD/JPY four-hour chart

USD/JPY

Overview
Today last price	130.82
Today Daily Change	-0.14
Today Daily Change %	-0.11
Today daily open	130.96

Trends
Daily SMA20	134.3
Daily SMA50	138.86
Daily SMA100	141.04
Daily SMA200	136.3

Levels
Previous Daily High	131.4
Previous Daily Low	129.51
Previous Weekly High	134.5
Previous Weekly Low	130.78
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	130.68
Daily Fibonacci 61.8%	130.23
Daily Pivot Point S1	129.85
Daily Pivot Point S2	128.73
Daily Pivot Point S3	127.95
Daily Pivot Point R1	131.74
Daily Pivot Point R2	132.52
Daily Pivot Point R3	133.63

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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