- USD/JPY remained under pressure, as the 50 DMA crossed below the 200 DMA.
- The bears stepped in and recouped 130.00, while keeping an eye on 129-00.
The USD/JPY fell as the North American session progressed and dipped below 130.00 as buyers failed to break the 20-day EMA at 130.74. Factors such as the weakness of the US dollar (USD) and falling Treasury yields are two key reasons for the renewed strength of the Japanese yen (JPY). At the time of writing, the USD/JPY pair is trading at 129.77.
USD/JPY Price Analysis: Technical Insights
Tuesday’s session was characterized by USD/JPY hitting a weekly high at 131.11, slightly above the 20-day EMA, but fell as low as 130.10. Today, USD/JPY made a daily high at 130.58 but extended its losses as the 50 day EMA crossed below the 200 day EMA meaning a deadly crossover has emerged in the daily, which suggests that further declines are expected.
Oscillators such as the Relative Strength Index (RSI) and the Rate of Change (RoC) point lower, supporting prices lower.
Therefore, the first support for USD/JPY would be the daily low at 129.26. A break below would expose the psychological level of 129.00, followed by the Jan 20 swing low at 128.34 and the yoy low of 127.21. As an alternate scenario, if USD/JPY recovers to 130.00, the pair could challenge the 20-day EMA.
Key technical levels for USD/JPY
|Last price today||129.83|
|Today Change Daily||-0.33|
|today’s daily variation||-0.25|
|today’s daily opening||130.16|
|previous daily high||131.12|
|previous daily low||129.73|
|Previous Weekly High||131.58|
|previous weekly low||127.22|
|Previous Monthly High||138.18|
|Previous monthly minimum||130.57|
|Fibonacci daily 38.2||130.26|
|Fibonacci 61.8% daily||130.58|
|Daily Pivot Point S1||129.55|
|Daily Pivot Point S2||128.94|
|Daily Pivot Point S3||128.16|
|Daily Pivot Point R1||130.94|
|Daily Pivot Point R2||131.72|
|Daily Pivot Point R3||132.33|
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.