• Long-term, the USD/JPY is neutral-to-upward biased, facing solid resistance at 135.50.
  • The USD/JPY hourly chart portrays a 40 pip narrow trading range ahead of Wednesday’s US CPI report.

The USD/JPY is almost flat amidst a calmed North American session ahead of July’s US inflation report, which could shed light on further Federal Reserve tightening in the September meeting. At the time of writing, the USD/JPY is trading at 135.12, slightly up 0.14%.

USD/JPY Price Analysis: Technical outlook

The USD/JPY daily chart portrays the pair as neutral-to-upward biased. In the last couple of days, the pair’s price action faced solid resistance around the 135.50 area, putting a lid on the USD/JPY, while the Relative Strength Index (RSI) at 50.32 sideways illustrates the consolidation in the pair.

If the USD/JPY breaks above 135.50, the next resistance would be the 20-day EMA at 135.83. Once cleared, the next resistance would be the July 28 high at 136.57, followed by 137.00. On the flip side, the USD/JPY first support would be the 50-day EMA at 135.12. Break below will expose the 135.00 figure, followed by the August 5 daily low at 132.52.

USD/JPY Daily chart

From a near-term perspective, the one-hour USD/JPY chart illustrates Tuesday’s price action’s narrow 40 pip range. The 20 and 50-hour EMAs around the 134.95-97 area cement the previously mentioned, signaling that USD/JPY traders remain at bay, waiting for fresh US economic data, namely inflation. Therefore, a break above/below that range would determine the faith of the major.

Upwards, the USD/JPY’s first resistance would be the 135.50 mark. A breach of the latter will expose the July 27 daily high at 136.58, followed by 137.00. Downwards, the USD/JPY’s first support will be the August 8 daily low at 134.75. Once cleared, the next support will be the 200-hour EMA at 133.57.

USD/JPY Hourly chart

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price 135.12
Today Daily Change 0.23
Today Daily Change % 0.17
Today daily open 134.89
 
Trends
Daily SMA20 135.95
Daily SMA50 135.02
Daily SMA100 130.87
Daily SMA200 122.86
 
Levels
Previous Daily High 135.58
Previous Daily Low 134.35
Previous Weekly High 135.5
Previous Weekly Low 130.4
Previous Monthly High 139.39
Previous Monthly Low 132.5
Daily Fibonacci 38.2% 134.82
Daily Fibonacci 61.8% 135.11
Daily Pivot Point S1 134.3
Daily Pivot Point S2 133.71
Daily Pivot Point S3 133.06
Daily Pivot Point R1 135.53
Daily Pivot Point R2 136.18
Daily Pivot Point R3 136.77

 

 

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