USD/JPY Price Analysis: Remains vulnerable near two-week lows, around 103.00 mark

USD/JPY was seen consolidating its losses near two-week lows, around 103.00 mark.
The formation of a descending channel points to a well-established bearish trajectory.
The pair seems vulnerable to challenge the channel support, near the 102.60-55 area.

Haresh Menghani FXStreet

The USD/JPY pair now seems to have entered a bearish consolidation phase and was seen oscillating in a range around 103.00 mark, just above two-week lows set on Wednesday.

Looking at the technical picture, the pair has been trending lower over the past four months or so along a downward sloping channel. This, in turn, points to a well-established downtrend and supports prospects for further weakness.

The negative outlook is reinforced by the fact that technical indicators on the daily chart have been struggling to recover from the bearish trajectory. However, year-end thin trading volumes held bearish traders from placing fresh bets.

Nevertheless, the USD/JPY pair remains vulnerable to slide further below December monthly swing lows and aim to challenge the lower boundary of the trend channel. The mentioned support is currently pegged near the 102.60-55 region.

Some follow-through selling will mark a fresh bearish breakdown and set the stage for an extension of the depreciating move. The USD/JPY pair might then accelerate the slide to the 102.00 mark before eventually dropping to test 2020 lows, around the 101.20-15 region.

On the flip side, the 103.40-50 area now becomes immediate strong resistance ahead of weekly highs, just ahead of the 104.00 level. A sustained move beyond might trigger a short-covering bounce and push the USD/JPY pair to the 104.70-75 supply zone.

This is followed by the key 105.00 psychological mark, which coincides with the trend-channel resistance and act as a strong barrier for the USD/JPY pair.

USD/JPY daily chart

Technical levels to watch

USD/JPY

Overview
Today last price	103.15
Today Daily Change	-0.11
Today Daily Change %	-0.11
Today daily open	103.26

Trends
Daily SMA20	103.74
Daily SMA50	104.18
Daily SMA100	104.93
Daily SMA200	106.1

Levels
Previous Daily High	103.64
Previous Daily Low	102.96
Previous Weekly High	103.89
Previous Weekly Low	103.25
Previous Monthly High	105.68
Previous Monthly Low	103.18
Daily Fibonacci 38.2%	103.22
Daily Fibonacci 61.8%	103.38
Daily Pivot Point S1	102.93
Daily Pivot Point S2	102.61
Daily Pivot Point S3	102.25
Daily Pivot Point R1	103.62
Daily Pivot Point R2	103.97
Daily Pivot Point R3	104.3

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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