#USDJPY @ 135.929 A breakdown of the H&S formation has triggered a bearish reversal. (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)]

• A breakdown of the H&S formation has triggered a bearish reversal.
• The 200-EMA has acted as a major barricade for the US Dollar.
• A slippage inside the bearish range by the RSI (14) has activated bearish momentum.

The pair currently trades last at 135.929.

The previous day high was 137.25 while the previous day low was 136.25. The daily 38.2% Fib levels comes at 136.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.63, expected to provide resistance.

The USD/JPY pair has witnessed a steep fall in Tokyo and has surrendered the round-level support of 139.00. The asset has sensed immense pressure as the US Dollar Index (DXY) is witnessing an intense sell-off. A sheer recovery in investors’ risk appetite has faded safe-haven’s appeal.

S&P500 futures have recovered losses recorded in the early Tokyo session as uncertainty over Federal Reserve (Fed)’s policy outlook has lost its traction. Meanwhile, the 10-year US Treasury yields have corrected to near 3.46% as a deceleration in the rate hike pace by the Fed looks imminent.

On an hourly scale, the major has delivered a breakdown of the Head and Shoulder chart pattern that signals a bearish reversal. A slippage below the neckline plotted from December 6 low at 135.96 has weighed on the US Dollar. Apart from that, the asset has been failing in holding itself above the 200-period Exponential Moving Average (EMA) at 137.10, which indicates strength in the Japanese yen.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signifies that a bearish momentum has been triggered.

For further downside, the asset needs to drop below Friday’s low at 135.77, which will drag the pair toward the round-level support at 135.00, followed by December 5 low at 134.13.

Alternatively, a break above the 200-EMA around 137.00 will drive the asset towards Wednesday’s high at 137.86. A break above the latter will expose the pair for more upside toward November 25 high at 139.60.

Technical Levels: Supports and Resistances

USDJPY currently trading at 135.9 at the time of writing. Pair opened at 136.68 and is trading with a change of -0.57 % .

The pair is trading below its 20 Daily moving average @ 138.51, below its 50 Daily moving average @ 143.51 , below its 100 Daily moving average @ 141.09 and above its 200 Daily moving average @ 134.94

The previous day high was 137.25 while the previous day low was 136.25. The daily 38.2% Fib levels comes at 136.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.63, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 136.2, 135.72, 135.2
• Pivot resistance is noted at 137.2, 137.73, 138.2

[/s2If]
Join Our Telegram Group