USD/JPY Price Analysis: Stumbles below 134.00 and the 200-DMA on soft USD

The USD/JPY retraced from daily highs of 120 pips, as the USD is being offered.
USD/JPY: Daily close below the 200-DMA opens the door for a drop to 131.70s.

Christian Borjon Valencia FXStreet

The US Dollar (USD) gave away its earlier gains courtesy of upbeat economic data revealed in the United States (US) and dropped 0.52% against the Japanese Yen (JPY). At the time of writing, the USD/JPY is trading at 134.63, below the 200-day Exponential Moving Average (EMA), as the JPY gets ready to finish the week with gains of 3.26%.

USD/JPY Price Analysis: Technical outlook

The USD/JPY daily chart portrays the pair as downward biased after breaking the 200-day EMA and a five-month-old upslope support trendline. Nevertheless, upbeat US data exacerbated a rally toward Friday’s high of 135.98. However, the Relative Strength Index (RSI) at bearish territory and the Rate of Change (RoC) aiming lower showed that sellers were gathering momentum. Eventually, the USD/JPY erased those gains and some more.

If the USD/JPY achieves a daily close below the 200-day EMA at 134.99, it could pave the way for further downside action. The USD/JPY key support levels would be the psychological 134.00 figure. A breach of the latter could open the door for a 220 pip drop towards the August 11 low at 131.73, followed by August’s low at 130.39.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	134.68
Today Daily Change	-0.63
Today Daily Change %	-0.47
Today daily open	135.31

Trends
Daily SMA20	140.78
Daily SMA50	144.32
Daily SMA100	141.18
Daily SMA200	134.41

Levels
Previous Daily High	138.15
Previous Daily Low	135.21
Previous Weekly High	142.25
Previous Weekly Low	138.05
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	136.33
Daily Fibonacci 61.8%	137.03
Daily Pivot Point S1	134.3
Daily Pivot Point S2	133.29
Daily Pivot Point S3	131.36
Daily Pivot Point R1	137.24
Daily Pivot Point R2	139.16
Daily Pivot Point R3	140.17

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.

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