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USD/JPY Price Analysis: Turns bearish, sliding below the one-hour 200-EMA, as sellers eye 143.00

  • USD/JPY drops on a risk-on impulse due to equities rising amidst a falling greenback and US T-bond yields.
  • If the USD/JPY clears 144.00, the pair could tumble to 143.00.
  • Even though RSI is at oversold conditions, the break of the 200-EMA in the hourly chart shifted the bias downwards.

USD/JPY is subdued, falling for the second straight day as global equities extended their rally, following actions of some central banks, like the Bank of England (BoE) and the Reserve Bank of Australia (RBA), taking a “dovish” stance. Therefore, speculations that the Fed might follow suit sent US T-bond yields and the greenback diving. At the time of writing, the USD/JPY is trading at 144.07, shy of the 144.00 figure, down 0.32%.

USD/JPY Price Analysis: Technical outlook

From a technical analysis perspective, the USD/JPY is still upward biased, even though it is approaching the 20-day EMA at 143.76. Upside lies resistance at around 144.00, followed by Monday’s high at 144.93, ahead of the Bank of Japan’s (BoJ) line on the sand at 145.00.

For the major to shift neutral, the USD/JPY would need to collapse below the September 22 low of 140.34. Once cleared, the next support would be the 50-day EMA at 139.11.

The USD/JPY one-hour scale shows the majors tumbled below 144.67, Tuesday’s daily pivot, and the confluence of the 20, 50, and 100-EMAs, opening the door for further losses. Furthermore, as the USD/JPY heads south, it surpassed the 200-EMA at 144.19, shifting the short-term bias downwards. Albeit the Relative Strength Index (RSI) is at oversold conditions, a fall towards the S2 pivot point at 143.49, ahead of a test of the 143.00 figure.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price144.06
Today Daily Change-0.47
Today Daily Change %-0.33
Today daily open144.53
 
Trends
Daily SMA20143.71
Daily SMA50139
Daily SMA100136.35
Daily SMA200128.12
 
Levels
Previous Daily High145.32
Previous Daily Low144.16
Previous Weekly High144.9
Previous Weekly Low143.25
Previous Monthly High145.9
Previous Monthly Low138.78
Daily Fibonacci 38.2%144.6
Daily Fibonacci 61.8%144.88
Daily Pivot Point S1144.02
Daily Pivot Point S2143.5
Daily Pivot Point S3142.85
Daily Pivot Point R1145.18
Daily Pivot Point R2145.84
Daily Pivot Point R3146.35

Author

Christian Borjon Valencia

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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