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.

Omkar Godbole FXStreet Contributor

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

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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