- USD/JPY pulled back from daily highs of 120 points as the dollar is being offered.
- USD/JPY: Daily close below the 200 DMA opens the door for a fall to 131.75.
The US dollar (USD) it gave back its earlier gains courtesy of upbeat economic data released in the United States (US) and fell 0.52% against the Japanese yen (JPY). At the time of writing this article, the USD/JPY It is trading at 134.63, below the 200 day EMA, as the yen prepares to end the week with gains of 3.26%.
USD/JPY Price Analysis: Technical Perspective
The daily chart of USD/JPY shows the pair with a bearish bias after breaking through the 200 day EMA and a bullish support trend line from five months ago. However, encouraging data out of the US exacerbated a rally towards Friday’s high of 135.98. However, the Relative Strength Index (RSI) in bearish territory and the Rate of Change (RoC) pointing lower showed that sellers were gathering momentum. Ultimately, USD/JPY erased those gains and more.
If USD/JPY makes a daily close below the 200 day EMA at 134.99, it could pave the way for more bearish action. The key support level for USD/JPY would be the psychological figure of 134.00. A break of the latter could open the door for a 220 point drop towards the August 11 low at 131.73, followed by the August low at 130.39.
Key USD/JPY Technical Levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
