USD/JPY Technical Analysis: Flashing red below 200-day MA, down 20+ pips in Asia


  • USD/JPY has trapped buyers with a false breakout above the 200-day average. 
  • The pair is trapped in a rising wedge pattern on the daily chart. 

USD/JPY is currently trading at 108.74, representing a 24-pip loss on the daily open of 108.98. 

The currency pair is losing altitude amid the moderate losses in the US index futures. At press time, the futures on the S&P 500 and Nasdaq are reporting 0.12% and 0.17% losses, respectively, as doubts have re-emerged over prospects of the US-China trade deal. 

Technically speaking, the currency pair has tapped the bulls on the wrong side of the market in the last 48 hours. The pair closed above the 200-day MA on Tuesday only to fall back below the long-term MA in the overnight trade. 

Also, the pair is trapped in a rising wedge on the daily chart. It comprises of converging ascending trendlines drawn from higher highs and higher lows. The converging nature of trendlines represents buyer exhaustion. Hence, a rising wedge breakdown is considered a bearish reversal pattern. 

In USD/JPY's case, a close below the lower edge of the wedge, currently at 108.09, would confirm breakdown and open the doors for 106.48 (Oct. 3 low). 

On the higher side, acceptance above 109.25 (Tuesday's high) is needed to revive the bullish view. 

Daily chart

Trend: Bearish

Technical levels

USD/JPY

Overview
Today last price 108.74
Today Daily Change -0.15
Today Daily Change % -0.14
Today daily open 108.94
 
Trends
Daily SMA20 108.6
Daily SMA50 107.86
Daily SMA100 107.6
Daily SMA200 109.03
 
Levels
Previous Daily High 109.19
Previous Daily Low 108.82
Previous Weekly High 109.29
Previous Weekly Low 107.89
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.96
Daily Fibonacci 61.8% 109.05
Daily Pivot Point S1 108.78
Daily Pivot Point S2 108.61
Daily Pivot Point S3 108.4
Daily Pivot Point R1 109.15
Daily Pivot Point R2 109.36
Daily Pivot Point R3 109.52

 

 

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