USD/JPY Technical Analysis: 38.2% Fib retracement is the level to beat for the bears

The USD/JPY pair has bounced off from 112.96 (38.2 percent Fib of 110.38/114.55) for the second day, establishing the Fibonacci retracement as a key level to beat for the bears.
A daily close below 112.96 would bolster the bearish setup, as indicated by the descending 5-day and 10-day exponential moving averages (MAs), the bearish crossover on the MACD, and would allow a deeper drop to 112.12 (50-day EMA).
On the higher side, a move above yesterday's high of 113.94 (previous day's high) would validate the defense of 38.2 percent Fibonacci retracement and could yield re-test of 114.00.

Omkar Godbole FXStreet Contributor

Daily Chart

Spot Rate: 113.12

Daily High: 113.23

Daily Low: 112.93

Trend: Bearish below 38.2 percent Fib

Resistance

R1: 113.23 (daily high)

R2: 113.94 (previous day's high)

R3: 114.55 (recent high)

Support

S1: 112.96 (38.2 percent Fibonacci retracement)

S2: 112.46 (50 percent Fib R of 110.38/114.55)

S3: 112.12 (50-day EMA)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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