Categories: Markets

USD/JPY Price Analysis: Oscillates around 135.00 due to lack of catalyst

USD/JPY Price Analysis: Oscillates around 135.00 due to lack of catalyst
  • In the longer term, USD/JPY has a neutral to bullish bias, facing strong resistance at 135.50.
  • The USD/JPY hourly chart shows a tight 40-point trading range ahead of Wednesday’s US CPI report.

The USD/JPY it is almost sideways amid a calm American session ahead of the July US inflation report, which could shed light on further Fed tightening at the September meeting. At the time of writing, USD/JPY is trading at 135.12, slightly up 0.14%.

USD/JPY Price Analysis: Technical Outlook

The USD/JPY daily chart shows the pair with a neutral to bullish bias. Over the past two days, the pair’s price action has faced solid resistance around the 135.50 area, capping USD/JPY, while the Relative Strength Index (RSI) at 50.32 illustrates the consolidation of the pair.

If USD/JPY breaks above 135.50, the next resistance would be the 20-day EMA at 135.83. Once broken, the next resistance would be the July 28 high at 136.57, followed by 137.00. On the other hand, the first support for the USD/JPY would be the 50-day EMA at 135.12. If it breaks below, the 135.00 figure will be exposed, followed by the 5th Aug daily low at 132.52.

USD/JPY daily chart

From a short term perspective, the USD/JPY one hour chart illustrates the tight 40 pip range of Tuesday’s price action. The 20 and 50 hourly EMAs around the 134.95-97 area support the above, indicating that USD/JPY traders remain awaiting further US economic data, specifically inflation. Therefore, a break above/below that range would determine the move of the pair.

To the upside, the first resistance for USD/JPY would be the 135.50 level. A break of the latter would expose the daily high of July 27 at 136.58, followed by 137.00. To the downside, the first support for USD/JPY will be the daily low of August 8 at 134.75. Once broken, the next support will be the 200 hourly EMA at 133.57.

USD/JPY hourly chart

Technical levels


Last Price Today 135.02
Today’s Daily Change 0.13
Today’s Daily Change % 0.10
Today’s Daily Opening 134.89
20 Daily SMA 135.95
50 Daily SMA 135.02
100 Daily SMA 130.87
200 Daily SMA 122.86
Previous Daily High 135.58
Previous Daily Minimum 134.35
Previous Maximum Weekly 135.5
Previous Weekly Minimum 130.4
Monthly Prior Maximum 139.39
Previous Monthly Minimum 132.5
Daily Fibonacci 38.2% 134.82
Daily Fibonacci 61.8% 135.11
Daily Pivot Point S1 134.3
Daily Pivot Point S2 133.71
Daily Pivot Point S3 133.06
Daily Pivot Point R1 135.53
Daily Pivot Point R2 136.18
Daily Pivot Point R3 136.77

Source: Fx Street