USD/JPY Price Analysis: Pullback needs validation from 141.00

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.

Anil Panchal FXStreet

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

Overview
Today last price	141.72
Today Daily Change	-0.35
Today Daily Change %	-0.25%
Today daily open	142.07

Trends
Daily SMA20	144.36
Daily SMA50	145.08
Daily SMA100	141.03
Daily SMA200	133.47

Levels
Previous Daily High	142.25
Previous Daily Low	140.16
Previous Weekly High	140.8
Previous Weekly Low	137.67
Previous Monthly High	151.94
Previous Monthly Low	143.53
Daily Fibonacci 38.2%	141.45
Daily Fibonacci 61.8%	140.96
Daily Pivot Point S1	140.74
Daily Pivot Point S2	139.41
Daily Pivot Point S3	138.65
Daily Pivot Point R1	142.83
Daily Pivot Point R2	143.59
Daily Pivot Point R3	144.92

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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