untitled design

USD/JPY Price Analysis: Falls from weekly highs and bearish engulfing candlestick pattern in sight

  • USD/JPY trades at a loss ending five days of gains amid falling dollar and risk aversion.
  • A daily close below 138.17 could send the pair lower, with 138.00 as main support.
  • USD/JPY needs to recapture the 138.00 level to regain bullish momentum, with resistances at 138.17 and 139.00.

The USD/JPY pair forms a bearish candlestick pattern, breaking five days of gains, down nearly 0.60%, after hitting a weekly high of 138.74. Risk aversion and dollar weakness weighed on the USD/JPY pair. At the time of writing, the USD/JPY pair is trading at 137.90, below its opening price.

USD/JPY Price Analysis: Technical Perspective

The USD/JPY pair maintains a bullish bias, but a bearish candlestick formation could open the door for further losses. The Relative Strength Index (RSI) remains in bullish territory but is pointing lower, which could halt USD/JPY’s slide. However, if USD/JPY achieves a daily close below the Dec 15 daily low at 138.17, this would put bearish pressure on the pair.

In that case, the first support for USD/JPY would be 138.00. A break of this latter level would expose the May 18 daily low at 137.28, followed by the May 17 swing low at 136.30.

USD/JPY must reclaim the 138.00 figure for a bullish resumption. Once this is done, the next resistance would be the December 15 high at 138.17, followed by the 139.00 figure. A rally above the latter would expose USD/JPY to the upside. A recovery above the latter would expose the November 30 high at 139.89, before challenging the 140.00 figure.

USD/JPY Price Action – Daily Chart

USD/JPY Daily chart


Last price today 137.89
Today Change Daily -0.82
today’s daily variation -0.59
today’s daily opening 138.71
daily SMA20 135.38
daily SMA50 133.8
daily SMA100 133.07
daily SMA200 137.1
previous daily high 138.75
previous daily low 137.29
Previous Weekly High 135.77
previous weekly low 133.74
Previous Monthly High 136.56
Previous monthly minimum 130.63
Fibonacci daily 38.2 138.19
Fibonacci 61.8% daily 137.85
Daily Pivot Point S1 137.75
Daily Pivot Point S2 136.79
Daily Pivot Point S3 136.29
Daily Pivot Point R1 139.21
Daily Pivot Point R2 139.71
Daily Pivot Point R3 140.66

Source: Fx Street

You may also like

Most popular