USD/JPY Price Analysis: The yen strengthens, as bears stepped in around 128.60s

The USD/JPY daily chart is bearish biased, though it remains unable to extend its losses beneath 128.00
The USD/JPY is trading sideways in the near term, awaiting a break above/below 129.00/128.00.

Christian Borjon Valencia FXStreet

On Thursday, the USD/JPY fails to hold to its gains and trades beneath its opening price by 0.33% after hitting a daily high of 128.88. At the time of writing, the USD/JPY exchanges hand at 128.40, amidst a risk-off impulse and a soft US Dollar (USD).

USD/JPY Price Analysis: Technical outlook

Failure to crack the 20-day Exponential Moving Average (EMA) at 131.13 exposed the USD/JPY to selling pressure. In addition, price action dived back below a three-month-old downslope resistance trendline, which tracks the USD/JPY downtrend. Therefore, the path of least resistance is downwards, but a decisive break below the YTD low of 127.21 is needed, so the USD/JPY might get poised towards the May 24 daily low of 126.36.

Short term, the USD/JPY 4-hour chart suggests the pair as range bound, although the Relative Strength Index (RSI) is at bearish territory. The Rate of Change (RoC) shows buyers gathering momentum. Hence, mixed signals surrounding the USD/JPY pair might refrain traders from opening fresh positions unless a decisive break is achieved.

The USD/JPY key resistance levels are 129.00, the daily pivot at 129.33, and the 50-EMA at 129.60. On the other hand, the USD/JPY first support would be 128.00, followed by the January 18 daily low of 127.55, ahead of 127.00.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	128.49
Today Daily Change	-0.38
Today Daily Change %	-0.29
Today daily open	128.87

Trends
Daily SMA20	131.48
Daily SMA50	135.24
Daily SMA100	140.32
Daily SMA200	136.68

Levels
Previous Daily High	131.58
Previous Daily Low	127.57
Previous Weekly High	132.87
Previous Weekly Low	127.46
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	130.05
Daily Fibonacci 61.8%	129.1
Daily Pivot Point S1	127.1
Daily Pivot Point S2	125.33
Daily Pivot Point S3	123.08
Daily Pivot Point R1	131.11
Daily Pivot Point R2	133.35
Daily Pivot Point R3	135.12

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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