#USDJPY @ 135.274 The breaks a five-month-old trendline, eyeing the 200-day EMA around 134.99. (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)]

• The USD/JPY breaks a five-month-old trendline, eyeing the 200-day EMA around 134.99.
• Oscillators in bearish territory cement the downtrend, but overbought RSI might refrain USD/JPY short traders.
• USD/JPY: After reclaiming the 200-DMA, a fall toward 131.70 is on the cards.

The pair currently trades last at 135.274.

The previous day high was 139.9 while the previous day low was 137.65. The daily 38.2% Fib levels comes at 138.51, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.04, expected to provide resistance.

The USD/JPY plunges below 136.00, extending its losses towards the 135.20s area, spurred by a risk-off impulse and manufacturing activity weakening in the United States (US), posing a recession risk. Therefore, USD/JPY sellers stepped in, below Wednesday’s low, of 137.64, and sent the pair tumbling more than 250 pips. At the time of writing, the USD/JPY is trading at 135.34.

The USD/JPY shifted neutral-to-downward biased once it cleared the confluence of the 20, and 100-day EMA around 140.46/50. OF note, the 9-period Rate of Change (ROC) is gathering momentum, meaning sellers are in charge. Still, the Relative Strength Index (RSI) entered oversold conditions, meaning that the USD/JPY might consolidate around the 200-day Exponential Moving Average (EMA) at 134.99 before continuing to the downside.

Additionally, the USD/JPY tumbled below a 5-month-old upslope trendline draw from June lows, which exacerbated the downfall. To conclude, the USD/JPY is downward biased in the near term.

Hence, the USD/JPY first support would be 200-day EMA at 134.99. Break below will expose crucial psychological levels like the 134.00 and 133.00 figures, followed by the August 11 low at 131.73.

Technical Levels: Supports and Resistances

USDJPY currently trading at 135.34 at the time of writing. Pair opened at 138.08 and is trading with a change of -1.98 % .

The pair is trading below its 20 Daily moving average @ 141.42, below its 50 Daily moving average @ 144.46 , below its 100 Daily moving average @ 141.22 and above its 200 Daily moving average @ 134.32

The previous day high was 139.9 while the previous day low was 137.65. The daily 38.2% Fib levels comes at 138.51, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.04, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 137.19, 136.3, 134.95
• Pivot resistance is noted at 139.44, 140.79, 141.68

[/s2If]
Join Our Telegram Group