#USDJPY @ 138.634 bounces off intraday low but remains in the red for the third consecutive day., @nehcap view: Further downside expected (Pivot Orderbook analysis)
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- USD/JPY bounces off intraday low but remains in the red for the third consecutive day.
- Three-week-old descending trend line restricts immediate upside, downward-sloping support line from late September lures bears.
- Convergence of 100-DMA, 50% Fibonacci retracement level appears as the key.
The pair currently trades last at 138.634.
The previous day high was 139.35 while the previous day low was 137.87. The daily 38.2% Fib levels comes at 138.43, expected to provide support. Similarly, the daily 61.8% fib level is at 138.79, expected to provide resistance.
USD/JPY prints mild losses around 138.70 during the three-day losing streak amid early Wednesday. Even so, the quote bounces off intraday low of late to test the bears.
The yen pair’s latest losses could be linked to the failure to cross the key resistance line stretched from early November, around 139.20 by the press time. Also likely to favor the USD/JPY sellers are the bearish MACD signals and the downbeat RSI.
It’s worth noting that the quote’s further declines appear limited as the RSI (14) line is near the oversold territory. As a result, a descending support line from late September, near 136.90, appears crucial for USD/JPY bears to watch
In a case where the Yen pair remains bearish past 136.90, the odds of witnessing a south-run towards the early August top surrounding 135.60 and then to August month’s low near 130.40, can’t be ruled out.
Alternatively, a clear upside break of the aforementioned resistance line isn’t an open welcome for the USD/JPY buyers as a convergence of the 100-DMA and the 50% Fibonacci retracement level of the pair’s August-October upside will challenge the further advances near 141.25.
To sum up, USD/JPY is likely to decline further but the room towards the south is limited.
Trend: Further downside expected
Technical Levels: Supports and Resistances
USDJPY currently trading at 138.66 at the time of writing. Pair opened at 138.79 and is trading with a change of -0.09% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 138.66 |
| 1 | Today Daily Change | -0.13 |
| 2 | Today Daily Change % | -0.09% |
| 3 | Today daily open | 138.79 |
The pair is trading below its 20 Daily moving average @ 141.91, below its 50 Daily moving average @ 144.58 , below its 100 Daily moving average @ 141.21 and above its 200 Daily moving average @ 134.2
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 141.91 |
| 1 | Daily SMA50 | 144.58 |
| 2 | Daily SMA100 | 141.21 |
| 3 | Daily SMA200 | 134.20 |
The previous day high was 139.35 while the previous day low was 137.87. The daily 38.2% Fib levels comes at 138.43, expected to provide support. Similarly, the daily 61.8% fib level is at 138.79, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 137.99, 137.18, 136.5
- Pivot resistance is noted at 139.47, 140.16, 140.96
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 139.35 |
| Previous Daily Low | 137.87 |
| Previous Weekly High | 142.25 |
| Previous Weekly Low | 138.05 |
| Previous Monthly High | 151.94 |
| Previous Monthly Low | 143.53 |
| Daily Fibonacci 38.2% | 138.43 |
| Daily Fibonacci 61.8% | 138.79 |
| Daily Pivot Point S1 | 137.99 |
| Daily Pivot Point S2 | 137.18 |
| Daily Pivot Point S3 | 136.50 |
| Daily Pivot Point R1 | 139.47 |
| Daily Pivot Point R2 | 140.16 |
| Daily Pivot Point R3 | 140.96 |
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