USD/JPY technical analysis: Holding 2.5-month rising trendline


  • USD/JPY remains on slippery grounds despite Friday's defense of key trendline. 
  • A break below the ascending trendline support would expose the 200-day MA at 109.02.

USD/JPY found bids below the support of the trendline connecting Aug. 26 and Oct. 3 lows on Friday.

So far, however, Friday's defense of the trendline has failed to draw bids. This is evident from USD/JPY's flat action around 108.22. Currently, the rising trendline support is located at 108.09. 

Note that the 14-day relative strength index has dipped below 50, indicating bearish conditions. Further, the bearish view put forward by bearish reversal signaled by Wednesday's candle with long upper wick and Thursday's sharp drop is still valid. 

As a result, a breakdown of the ascending trendline cannot be ruled out. That will likely yield a deeper drop to the 200-day MA at 109.02. 

A break above the former support-turned-resistance of 108.25 is needed to invalidate the bearish setup.

Daily chart

Trend: Bearish

Technical levels

USD/JPY

Overview
Today last price 108.22
Today Daily Change 0.04
Today Daily Change % 0.04
Today daily open 108.18
 
Trends
Daily SMA20 108.36
Daily SMA50 107.69
Daily SMA100 107.58
Daily SMA200 109.04
 
Levels
Previous Daily High 108.32
Previous Daily Low 107.89
Previous Weekly High 109.29
Previous Weekly Low 107.89
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.16
Daily Fibonacci 61.8% 108.05
Daily Pivot Point S1 107.93
Daily Pivot Point S2 107.69
Daily Pivot Point S3 107.49
Daily Pivot Point R1 108.37
Daily Pivot Point R2 108.57
Daily Pivot Point R3 108.81

 

 

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