USD/JPY Price Analysis: Testing critical daily support line at 109.25

USD/JPY falls for the second straight day after the bear cross on 1D.
Bears testing bullish commitments at this critical daily support line.
The spot awaits confirmation for additional downside.

Dhwani Mehta FXStreet

USD/JPY is pressuring the intraday lows near 109.15, looking to extend Monday’s decline amid growing coronavirus concerns-led increased demand for the traditional safe-haven yen.

A broadly subdued US dollar is doing little to help the spot, as the covid situation in Japan is becoming more severe. Meanwhile, the government is not considering compiling an extra budget as yet.

The near-term technical outlook for USD/JPY appears bearish, as the spot awaits a daily closing below the two-month-old ascending trendline support at 109.25 to unleash additional downside.

Immediate support is seen at the July lows of 109.05, below which the May 25 low of 108.55 will be on the sellers’ radars.

The 14-day Relative Strength Index (RSI) is pointing south below the midline, supporting the potential move lower.

The bear cross, represented by the 21-Daily Moving Average (DMA) breaking through the 50-DMA from above, has added offered extra zest to the bears.

USD/JPY daily chart

Alternatively, only acceptance above the horizontal 100-DMA support turned resistance at 109.60 could negate the bearish trend in the near term.

Further up, the downward-pointing 21-DMA at 110.00 will be the level to beat for the bulls.

USD/JPY additional levels to watch

USD/JPY

Overview
Today last price	109.16
Today Daily Change	-0.18
Today Daily Change %	-0.16
Today daily open	109.31

Trends
Daily SMA20	110.04
Daily SMA50	110.09
Daily SMA100	109.6
Daily SMA200	107.16

Levels
Previous Daily High	109.77
Previous Daily Low	109.19
Previous Weekly High	110.58
Previous Weekly Low	109.36
Previous Monthly High	111.66
Previous Monthly Low	109.06
Daily Fibonacci 38.2%	109.41
Daily Fibonacci 61.8%	109.55
Daily Pivot Point S1	109.08
Daily Pivot Point S2	108.84
Daily Pivot Point S3	108.49
Daily Pivot Point R1	109.66
Daily Pivot Point R2	110.01
Daily Pivot Point R3	110.25

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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