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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.
Daily Chart
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Spot Rate: 113.12
Daily High: 113.23
Daily Low: 112.93
Trend: Bearish below 38.2 percent Fib
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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