• On Wednesday, the USD/JPY slide more than 1.50%, its largest daily loss since July 28.
  • USD/JPY buyers unable to break above 135.30 exacerbated the fall below the 133.00 mark.

The USD/JPY tanked more than 200 pips on Wednesday, courtesy of cooler-than-expected US CPI data, suggesting that the Federal Reserve might pivot, towards a dovish stance, spurring a risk-on impulse, with Wall Street’s recording substantial gains while the greenback weakened. However, as Thursday’s Asian Pacific session begins, the USD/JPY is trading at 132.85, further extending its weekly losses.

USD/JPY Price Analysis: Technical outlook

On Wednesday, the USD/JPY faced the confluence of three-technical signals above the exchange rate, which was the USD/JPY’s first resistance level. The convergence of the 20, 50-DMAs and a one-month-old downslope trendline around the 135.20-30 area was challenging to break. Nevertheless, Wednesday’s fall is attributed to US economic data releases. Still, the previously mentioned confluence of technical signals played its role for the last four days, with buyers unable to crack it. Therefore, the USD/JPY shifted its bias from neutral-upwards to neutral.

USD/JPY traders should notice that the Relative Strength Index is in bearish territory, indicating that sellers are gathering momentum. Unless buyers reclaim the 135.50 area, even though the pair is neutral, it is tilted to the downside.

Therefore, the USD/JPY’s first support will be the August 10 low at 132.03. Break below will expose the 100-day EMA at 131.20, the August 2 swing low at 131.20, and the psychological 130.00 figure.

USD/JPY Daily chart

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price 132.85
Today Daily Change -2.17
Today Daily Change % -1.61
Today daily open 135.02
 
Trends
Daily SMA20 135.86
Daily SMA50 135.15
Daily SMA100 131.01
Daily SMA200 122.97
 
Levels
Previous Daily High 135.2
Previous Daily Low 134.67
Previous Weekly High 135.5
Previous Weekly Low 130.4
Previous Monthly High 139.39
Previous Monthly Low 132.5
Daily Fibonacci 38.2% 135
Daily Fibonacci 61.8% 134.87
Daily Pivot Point S1 134.72
Daily Pivot Point S2 134.43
Daily Pivot Point S3 134.19
Daily Pivot Point R1 135.26
Daily Pivot Point R2 135.5
Daily Pivot Point R3 135.79

 

 

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