@nehcap’s viewpoint is that there is not much potential for the USDJPY pair to decline further and instead the current movement at 137.705 suggests a rebound from its recent lowest point in two months.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]

• USD/JPY portrays corrective bounce after refreshing two-month low.

The pair currently trades last at 137.705.

The previous day high was 138.96 while the previous day low was 137.92. The daily 38.2% Fib levels comes at 139.01, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.54, expected to provide resistance.

USD/JPY rebounds from the lowest levels in two months while paring intraday loss near 137.70 heading into Friday’s European session. In doing so, the Yen pair justifies oversold RSI conditions despite being in the red for the seventh consecutive day.

Apart from the oversold RSI (14) line, a convergence of the 100-DMA and 200-DMA, around 137.00 by the press time, also challenges the USD/JPY bears in keeping the reins.

However, Wednesday’s downside break of the previously key support line stretched from April, now immediate resistance near 139.50, joins the bearish MACD signals to keep the USD/JPY sellers hopeful.

Hence, the quote’s corrective bounce remains elusive below 139.50, a break of which will recall the 140.00 round figure to the chart.

However, the 61.8% Fibonacci retracement of its October 2022 to January 2023 downturn and a 10-month-old horizontal resistance area, respectively near 142.50 and 144.85-145.00, appear tough nuts to crack for the USD/JPY bulls past 140.00.

On the flip side, a daily closing beneath the aforementioned DMA confluence surrounding 137.00 will make the Yen pair vulnerable to testing an upward-sloping support line from mid-January 2023, close to 135.40 by the press time.

In a case where the USD/JPY remains bearish past 135.40, the odds of witnessing a gradual south-run toward the 130.00 psychological magnet can’t be ruled out.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 137.68 at the time of writing. Pair opened at 138.05 and is trading with a change of -0.27% % .

The pair is trading below its 20 Daily moving average @ 142.79, below its 50 Daily moving average @ 139.99 , above its 100 Daily moving average @ 136.96 and above its 200 Daily moving average @ 137.16

The previous day high was 138.96 while the previous day low was 137.92. The daily 38.2% Fib levels comes at 139.01, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.54, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 137.64, 136.78, 135.4
• Pivot resistance is noted at 139.88, 141.25, 142.11

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...