He USD/JPY it erased Monday’s gains and plunged to the 131.00 zone after hitting a weekly high of 132.90. The intervention of the Japanese authorities weakened the US dollar (USD), leading to a fall of 140 points. At the time of writing, USD/JPY is trading at 131.21, down 1.08% from its opening price.
From a daily chart standpoint, USD/JPY maintains its bullish bias, despite failing to break above Monday’s daily high and dipping below the 20-day EMA at 130.58. However, the bulls intervened around the latter, and USD/JPY retook the 131.00 figure, which could exacerbate a retest of 132.00. So, the next resistance for USD/JPY would be the 50 day EMA at 132.84, ahead of the 200 day EMA at 133.85.
As an alternative scenario, the first support for USD/JPY would be the 131.00 figure. Once broken, the 20-day EMA at 130.58 would be the next line of defense for USD/JPY bulls, followed by a move lower towards the psychological 130.00 level.
The indicators showed a sideways scenario, with the Relative Strength Index (RSI), although still biased to the upside, about to turn bearish. Conversely, the Rate of Change (RoC) suggests that buyers are still in control, although they were outpaced by sellers on Monday.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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