USD/JPY Technical Analysis: Bears eyeing Tuesday's low of 112.58 after rising wedge breakdown

Omkar Godbole FXStreet Contributor

The USD/JPY looks set to test the support at 112.58 (Tuesday's low), having suffered a rising wedge breakdown earlier today.

A deeper drop below that level, possibly to the 100-day moving average (MA) of 112.24, cannot be ruled out as the US treasury yield curve inversion is being read as a sign of impending economic recession.

Hourly chart

As seen above, the pair has established a bearish falling channel, having breached the rising trendline earlier this week.
The rising wedge breakdown seen earlier today indicates the sell-off from the Dec. 3 high of 113.71 has resumed.
The major averages (50, 100, and 200) are located one below the other, indicating the path of least resistance is on the downside.

Trend: Bearish

USD/JPY

Overview:
    Today Last Price: 112.83
    Today Daily change: -39 pips
    Today Daily change %: -0.344%
    Today Daily Open: 113.22
Trends:
    Previous Daily SMA20: 113.35
    Previous Daily SMA50: 113.09
    Previous Daily SMA100: 112.25
    Previous Daily SMA200: 110.52
Levels:
    Previous Daily High: 113.24
    Previous Daily Low: 112.65
    Previous Weekly High: 114.04
    Previous Weekly Low: 112.88
    Previous Monthly High: 114.25
    Previous Monthly Low: 112.3
    Previous Daily Fibonacci 38.2%: 113.02
    Previous Daily Fibonacci 61.8%: 112.88
    Previous Daily Pivot Point S1: 112.83
    Previous Daily Pivot Point S2: 112.44
    Previous Daily Pivot Point S3: 112.24
    Previous Daily Pivot Point R1: 113.43
    Previous Daily Pivot Point R2: 113.63
    Previous Daily Pivot Point R3: 114.02

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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