#USDJPY @ 142.504 holds lower ground near the short-term key support line., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/JPY holds lower ground near the short-term key support line.
• Bearish MACD signals, sustained trading below 21-SMA add strength to the downside bias.
• Bulls need validation from 143.10 to retake control.

The pair currently trades last at 142.504.

The previous day high was 143.5 while the previous day low was 142.13. The daily 38.2% Fib levels comes at 142.97, expected to provide resistance. Similarly, the daily 61.8% fib level is at 142.65, expected to provide resistance.

USD/JPY reverses the week-start gains as it pokes the 12-day-old support line near 142.50 during the early Tuesday morning in Europe.

In doing so, the yen pair justifies Friday’s downside break of the 21-SMA, as well as the previous day’s U-turn from the stated SMA, while also tracing the bearish MACD signals. With this, the quote is likely to break the immediate 142.50 support.

However, an upward sloping trend line from August 11, close to 140.80, holds the key to the USD/JPY bear’s entry.

In a case where the risk barometer pair breaks the 140.80 support, the tops marked during late August around 139.00 and 137.80-75 will gain the market’s attention.

On the contrary, a convergence of the 21-SMA and the downward sloping trend line from the last Wednesday, close to 143.10, appear a tough nut to crack for the USD/JPY buyers.

Should the quote rises past 143.10, the odds of witnessing another run-up towards refreshing the 24-year high, currently around 145.00, can’t be ruled out.

To sum up, USD/JPY is expected to witness a limited downside move.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 142.51 at the time of writing. Pair opened at 142.84 and is trading with a change of -0.23% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.06, 50 SMA 136.98, 100 SMA @ 134.21 and 200 SMA @ 125.87.

The previous day high was 143.5 while the previous day low was 142.13. The daily 38.2% Fib levels comes at 142.97, expected to provide resistance. Similarly, the daily 61.8% fib level is at 142.65, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 142.15, 141.46, 140.78
• Pivot resistance is noted at 143.51, 144.19, 144.88

[/s2If]
Join Our Telegram Group