USD/JPY technical analysis: Remains vulnerable, bears likely to target levels below 107.00 handle


  • The USD/JPY pair finally broke down of its recent consolidative trading range, held over the past one week or so and tumbled to its lowest level since the early-Jan. flash crash. 
  • Bulls, however, showed some resilience near 61.8% Fibonacci retracement level of the 104.69-112.40 up-move, which should now act as a key trigger point for bearish traders.

Looking at a slightly bigger picture, the pair has been trending lower along a short-term descending trend-channel from yearly tops - set on April 24, clearly indicating a well-established near-term bearish trend and supporting prospects for further declines.

However, oversold conditions seemed to be the only factor holding investors from placing any fresh bearish bets and might now lead to near-term consolidation or a modest rebound though might still be seen as a selling opportunity near the 108.00 handle.

A convincing break through the mentioned support will reinforce the bearish bias and turn the pair vulnerable to weaken farther below the 107.00 handle and aim towards challenging the trend-channel support, currently near the 106.70 region.

Having said that, a sustained recovery beyond the 108.50-70 supply zone - marking 50% Fibo. level and also nearing the descending trend-channel hurdle, might negate the bearish outlook and prompt some aggressive short-covering move in the near-term.

USD/JPY daily chart

USD/JPY

Overview
Today last price 107.67
Today Daily Change -0.43
Today Daily Change % -0.40
Today daily open 108.1
 
Trends
Daily SMA20 108.7
Daily SMA50 110.08
Daily SMA100 110.47
Daily SMA200 111.19
Levels
Previous Daily High 108.62
Previous Daily Low 107.9
Previous Weekly High 108.8
Previous Weekly Low 108.16
Previous Monthly High 111.71
Previous Monthly Low 108.23
Daily Fibonacci 38.2% 108.17
Daily Fibonacci 61.8% 108.34
Daily Pivot Point S1 107.79
Daily Pivot Point S2 107.49
Daily Pivot Point S3 107.07
Daily Pivot Point R1 108.51
Daily Pivot Point R2 108.93
Daily Pivot Point R3 109.23

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales

EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.

EUR/USD News

GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives

GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.

GBP/USD News

USD/JPY clings to gains near session tops, around 108.70 post-US data

The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.

USD/JPY News

Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures