USD/JPY Price Analysis: Struggles at weekly highs, retraces back to 134.10s
- USD/JPY hit a weekly high of 134.46 but retraced toward the 134.10 area.
- USD/JPY Price Analysis: Negative divergence between oscillators and price action could pave the way for downside action.
The USD/JPY consolidated around the 134.00 area after hitting a daily high of 134.46, though bears stepped in around the highs of the week, dragging prices lower. Hence, the USD/JPY changed its course gears and records minimal losses of 0.08%. The USD/JPY pair is trading around 134.10s on Thursday.
On February 15, the USD/JPY reached a daily high at 134.35, and since then, the USD/JPY has remained sideways within the 133.60/134.30 area. Even though the Relative Strength Index (RSI) is in bullish territory, as USD/JPY price action has headed north, the RSI did not. Hence, a negative divergence could emerge, suggesting that a price reversal looms.
If that scenario plays out, the USD/JPY first support would be this week’s low at 133.60. Break below, and the 20-day Exponential Moving Average (EMA) would be exposed at 133.28, followed by the February 13 daily high-turned support at 132.90.
On an alternate scenario, the USD/JPY’s first resistance would be the day’s high at 134.46, which, once cleared, could lift the USD/JPY to January 6 high at 134.77 before the major climbs to 135.00.
USD/JPY Daily chart
USD/JPY Key technical levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
