USDJPY Price Analysis: Plummets below the 100-DMA and hits a fresh 2-month low

The USDJPY is set to finish the week with losses of more than 5%.
From a daily chart perspective, the USDJPY is neutral-to-downward biased if the major stays below the 100-day EMA.

Christian Borjon Valencia FXStreet

The USDJPY extended its free fall and plummeted another 200 plus pips on Friday, below the 100-day Exponential Moving Average (EMA) at 140.76. Speculations that the Federal Reserve might slow the pace of rate hikes and US Treasury yields falling are the two main factors weighing on the US Dollar (USD). Therefore, the USDJPY is trading at 138.54, below its opening price by 1.73%.

USDJPY Price Analysis: Technical outlook

The USDJPY portrays that Thursday’s price action broke a one-month-old upslope support trendline, exacerbating a fall toward the 100-day EMA at 140.74. On Friday, the USDJPY hit a daily high at around 142.50 before diving sharply, as buyers failed to clear the September 22 swing low at 140.34, which shifted the pair’s bias from neutral to neutral downwards. The Relative Strength Index (RSI) tumbled toward the bearish territory, entering oversold conditions.

Even though the USDJPY cleared key support levels, a break of the 200-day EMA is needed so that Japanese Yen (JPY) buyers could be in charge. Otherwise, the USDJPY might be subject to buying pressure.

Therefore, the USDJPY first support would be the 138.00 figure. Break below will expose the 137.50 psychological level, followed buy a six-month-old upslope trendline that passes around 136.50, ahead of the 136.00 mark.

On the flip side, the USDJPY's first resistance would be the July 14 daily high at 139.38, followed by the psychological 140.00, ahead of the 100-day EMA.

USDJPY Key Technical Levels

USD/JPY

Overview
Today last price	138.55
Today Daily Change	-2.68
Today Daily Change %	-1.90
Today daily open	141.23

Trends
Daily SMA20	147.57
Daily SMA50	145.42
Daily SMA100	140.73
Daily SMA200	132.62

Levels
Previous Daily High	146.59
Previous Daily Low	141.2
Previous Weekly High	148.85
Previous Weekly Low	145.67
Previous Monthly High	151.94
Previous Monthly Low	143.53
Daily Fibonacci 38.2%	143.26
Daily Fibonacci 61.8%	144.53
Daily Pivot Point S1	139.42
Daily Pivot Point S2	137.62
Daily Pivot Point S3	134.03
Daily Pivot Point R1	144.81
Daily Pivot Point R2	148.39
Daily Pivot Point R3	150.2

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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