USD/JPY technical analysis: Drops to fresh weekly lows, eyeing 108.00 mark ahead of US CPI

The USD/JPY pair extended its overnight pullback from over one-week-old ascending trend-line hurdle and continued losing ground through the early European session on Wednesday.
A subsequent slide below 100-hour SMA, amid a shift in the risk mood, was seen as a key trigger for bearish traders and behind a follow-through weakness to fresh weekly lows.

Haresh Menghani FXStreet

Given that technical indicators on hourly and daily charts have failed to gain any meaningful traction, the pair now seems poised to resume its well-established near-term bearish trend and head back towards challenging multi-month lows support near the 107.85 zone.

Despite the bearish set-up, traders might still be reluctant to place any aggressive bets and prefer to wait on the sidelines ahead of Wednesday’s important release of the latest US consumer inflation figures, due later during the early North-American session.

On the upside, immediate resistance is now pegged near the 108.45-50 region, above which a bout of short-covering could lift the pair back towards challenging the mentioned trend-line resistance, currently placed just ahead of the 109.00 round figure mark.

USD/JPY 1-hourly chart

USD/JPY

Overview
Today last price	108.27
Today Daily Change	-0.25
Today Daily Change %	-0.23
Today daily open	108.52

Trends
Daily SMA20	109.2
Daily SMA50	110.44
Daily SMA100	110.53
Daily SMA200	111.28

Levels
Previous Daily High	108.8
Previous Daily Low	108.35
Previous Weekly High	108.62
Previous Weekly Low	107.81
Previous Monthly High	111.71
Previous Monthly Low	108.23
Daily Fibonacci 38.2%	108.63
Daily Fibonacci 61.8%	108.52
Daily Pivot Point S1	108.31
Daily Pivot Point S2	108.1
Daily Pivot Point S3	107.86
Daily Pivot Point R1	108.76
Daily Pivot Point R2	109.01
Daily Pivot Point R3	109.22

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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