- 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 Key Technical Levels
|Today last price||132.85|
|Today Daily Change||-2.17|
|Today Daily Change %||-1.61|
|Today daily open||135.02|
|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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