#USDJPY @ 133.576 fades bounce off eight-day low as 50-DMA challenges corrective bounce., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/JPY fades bounce off eight-day low as 50-DMA challenges corrective bounce.
• Impending bear cross on MACD, steady RSI favor continuation of the latest downside.
• 100-DMA, 3.5-month-old ascending trend line appear tough nuts to crack for Yen pair sellers.

The pair currently trades last at 133.576.

The previous day high was 134.48 while the previous day low was 133.37. The daily 38.2% Fib levels comes at 133.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 134.05, expected to provide resistance.

USD/JPY drops back towards the lowest levels in a week, mildly offered near 133.55 by the press time, as it defends the previous day’s downside break of the 50-DMA amid early Wednesday.

Adding strength to the bearish bias is the steady RSI (14) line around the 50.00 level, as well as the looming bear cross on the MACD indicator.

With this, the Yen pair is all set to revisit the eight-day low marked on Tuesday around 133.35. However, the 100-DMA support of near 132.90 could challenge the USD/JPY bears afterward.

In a case where the quote remains bearish past 132.90, an upward-sloping support line from the mid-January, close to 131.90 by the press time, will be the last defense of the Yen pair buyers as a break of which could open doors for the pair’s fall towards the yearly low of near 127.20.

Alternatively, a daily closing beyond the 50-DMA level of 133.80 becomes necessary for the USD/JPY buyers to take the risk of fresh entry.

Even so, the latest swing high around 135.15 and a horizontal area comprising multiple levels marked since November 2022, surrounding 133.45-70, will be a tough nut to crack for the Yen pair bulls.

To sum up, USD/JPY remains on the bear’s radar with the 50-DMA breakdown.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 133.58 at the time of writing. Pair opened at 133.79 and is trading with a change of -0.16% % .

The pair is trading above its 20 Daily moving average @ 133.21, below its 50 Daily moving average @ 133.79 , above its 100 Daily moving average @ 132.95 and below its 200 Daily moving average @ 137.03

The previous day high was 134.48 while the previous day low was 133.37. The daily 38.2% Fib levels comes at 133.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 134.05, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 133.28, 132.77, 132.17
• Pivot resistance is noted at 134.39, 134.99, 135.5

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