USD/JPY Price Analysis: Pulls back from 61.8% Fibonacci, 200-day SMA on Fed’s action

USD/JPY fails to extend Friday’s recovery moves.
Fed surprised markets with a rate cut and QE, cancels this week’s FOMC meeting.
August 2019 low on the bears' radar.

Anil Panchal FXStreet

USD/JPY remains on the back foot around 106.40, down 1.42%, in a reaction to the Fed’s surprise during early-Monday in Asia.

Read: Powell speech: The Fed is going to “go in strong” on asset purchases

In doing so, the yen pair fails to hold onto its recovery gains from Friday while also staying below 61.8% Fibonacci retracement of its fall from April 2019 and 200-day SMA.

That said, the pair currently declines towards 38.2% Fibonacci retracement level, around 105.45, whereas August 2019 low near 104.85 could become the bears’ favorite afterward.

On the upside, 61.8% of Fibonacci retracement, near 108.10, followed by a 200-day SMA of 108.25, act as the immediate upside barriers for the pair.

Should there be a sustained run-up past-108.25, buyers can aim for 109.50/55 ahead of January month high near 110.30.

USD/JPY daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	106.41
Today Daily Change	-1.55
Today Daily Change %	-1.44%
Today daily open	107.96

Trends
Daily SMA20	108.18
Daily SMA50	108.97
Daily SMA100	108.96
Daily SMA200	108.27

Levels
Previous Daily High	108.51
Previous Daily Low	104.51
Previous Weekly High	108.51
Previous Weekly Low	101.18
Previous Monthly High	112.23
Previous Monthly Low	107.51
Daily Fibonacci 38.2%	106.98
Daily Fibonacci 61.8%	106.03
Daily Pivot Point S1	105.47
Daily Pivot Point S2	102.99
Daily Pivot Point S3	101.47
Daily Pivot Point R1	109.47
Daily Pivot Point R2	110.99
Daily Pivot Point R3	113.47

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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