• An ongoing inventory adjustment process has activated investors for a decisive move.
  • Overlapping 10-and-20-EMAs are still favoring a consolidation ahead.

  • The RSI (14) has witnessed some signs of exhaustion in the upside bias.

The USD/JPY pair has slipped to near 144.27 in the Tokyo session after failing to sustain above the critical resistance of 144.50. The asset is continuously facing barricades above 144.50 despite multiple attempts. On a broader note, the asset is advancing sharply higher after hitting a low of 140.35.

Considering the four-hour scale, the major is auctioning in an inventory adjustment process. It is critical to state that the adjustment process is an accumulation or distribution. Odds favor an inventory distribution as the asset is displaying signs of momentum loss.

The asset price is overlapping with the 20-and 50-period Exponential Moving Averages (EMAs), which indicates a consolidation ahead.

Scrutiny of the condition of the Relative Strength Index (RSI) (14) displays that the oscillator is struggling to shift into the bullish range of 60.00-80.00. This has come after the momentum oscillators displayed a range shift sign vertically to a bearish range of 20.00-40.00 from the bullish range.

For a decisive bearish reversal, the asset is required to drop below Thursday’s low at 140.35. An occurrence of the same will drag the asset towards the August 30 low at 138.05 followed by the August 23 low at 135.81.

Alternatively, the greenback bulls could drive the asset higher after overstepping Thursday’s high at 145.90, which will drive the asset towards the August 1998 high at 147.67. A breach of the latter will send the major towards the psychological resistance of 150.00.

USD/JPY four-hour chart

USD/JPY

Overview
Today last price 144.48
Today Daily Change -0.28
Today Daily Change % -0.19
Today daily open 144.76
 
Trends
Daily SMA20 142.51
Daily SMA50 138.27
Daily SMA100 135.6
Daily SMA200 127.36
 
Levels
Previous Daily High 144.79
Previous Daily Low 143.25
Previous Weekly High 145.9
Previous Weekly Low 140.35
Previous Monthly High 139.08
Previous Monthly Low 130.4
Daily Fibonacci 38.2% 144.2
Daily Fibonacci 61.8% 143.84
Daily Pivot Point S1 143.74
Daily Pivot Point S2 142.73
Daily Pivot Point S3 142.21
Daily Pivot Point R1 145.28
Daily Pivot Point R2 145.8
Daily Pivot Point R3 146.82

 

 

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