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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.

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 price128.49
Today Daily Change-0.38
Today Daily Change %-0.29
Today daily open128.87
 
Trends
Daily SMA20131.48
Daily SMA50135.24
Daily SMA100140.32
Daily SMA200136.68
 
Levels
Previous Daily High131.58
Previous Daily Low127.57
Previous Weekly High132.87
Previous Weekly Low127.46
Previous Monthly High138.18
Previous Monthly Low130.57
Daily Fibonacci 38.2%130.05
Daily Fibonacci 61.8%129.1
Daily Pivot Point S1127.1
Daily Pivot Point S2125.33
Daily Pivot Point S3123.08
Daily Pivot Point R1131.11
Daily Pivot Point R2133.35
Daily Pivot Point R3135.12

Author

Christian Borjon Valencia

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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