USD/JPY Price Analysis: Reverses lower from 109.58, focus on weekly close

USD/JPY has established another low high on the hourly chart at 109.58.
A close below the 100-week MA on Friday would confirm a bearish reversal.

Omkar Godbole FXStreet Contributor

The buying interest in the Japanese yen gathered traction in the last hour or so, pushing USD/JPY lower to 109.46 from the session high of 109.58.

With the reversal lower from 109.58, the pair has established another lower high on the hourly chart. So, a re-test of Thursday's low of 109.27 cannot be ruled out.

Weekly close pivotal

The pair is currently trading below the 100-week average at 109.66. The bulls failed to secure a weekly close above that average at least six times during the two months to the second week of January.

The pair scaled the 100-week average last week, confirming a bullish breakout or a continuation of the rally from the low of 104.45 seen in August.

So far, however, the follow-through has been dismal, as evidenced by the pair's drop below the key average.

If the pair closes below the 100-week average of 109.66 on Friday, the bullish breakout would fail. A failed breakout would imply bearish reversal and open the doors for a deeper drop to 107.65 (January low).

Weekly chart

Trend: Bearish below 100-week MA

Technical levels

USD/JPY

Overview
Today last price	109.46
Today Daily Change	-0.03
Today Daily Change %	-0.03
Today daily open	109.49

Trends
Daily SMA20	109.34
Daily SMA50	109.17
Daily SMA100	108.67
Daily SMA200	108.52

Levels
Previous Daily High	109.9
Previous Daily Low	109.26
Previous Weekly High	110.3
Previous Weekly Low	109.46
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	109.51
Daily Fibonacci 61.8%	109.66
Daily Pivot Point S1	109.21
Daily Pivot Point S2	108.92
Daily Pivot Point S3	108.57
Daily Pivot Point R1	109.84
Daily Pivot Point R2	110.19
Daily Pivot Point R3	110.47

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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