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.

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


Today last price 108.27
Today Daily Change -0.25
Today Daily Change % -0.23
Today daily open 108.52
Daily SMA20 109.2
Daily SMA50 110.44
Daily SMA100 110.53
Daily SMA200 111.28
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



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