- USD/JPY retreats from 11-week-old previous support, snaps four-day downtrend.
- Convergence of 100-DMA, 50% Fibonacci retracement level challenge bears.
- Golden ratio appears the key for bearish confirmation, monthly resistance line adds to the upside filters.
USD/JPY takes offers to refresh intraday low near 141.70 heading into Tuesday’s European session.
In doing so, the Yen pair reverses from the previous support line stretched from early September, around 142.25 by the press time, amid bearish MACD signals.
The pullback moves, however, appear shallow as a confluence of the 100-Day Moving Average (DMA) and the 50% Fibonacci retracement level of the pair’s August-October upside, near the 141.00 round figure, challenge the USD/JPY bears.
Even if the Yen pair sellers dominate past 141.00, the 140.00 threshold and the 61.8% Fibonacci retracement level surrounding 138.60, also known as the Golden Ratio, could restrict the quote’s further downside.
Following that, the early August high near 135.50 could regain the market’s attention.
On the contrary, an upside break of the support-turned-resistance line near 142.25 won’t be an open invitation to the USD/JPY bears as a downwards-sloping resistance line from late October, close to 143.45, could challenge the upside momentum.
In a case where USD/JPY remains firmer past 143.45, multiple hurdles around 145.10 appear the last defense of the pair sellers.
To sum up, USD/JPY retreats from short-term key hurdle but the overall view remains bullish.
USD/JPY: Daily chart
Trend: Limited downside expected
Additional important levels
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
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.