#USDJPY @ 139.352 extends previous day’s fall within one-week-old bearish chart formation., @nehcap view: Further downside expected (Pivot Orderbook analysis)

…
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 extends previous day’s fall within one-week-old bearish chart formation.
• Sustained trading below 100-EMA, bearish MACD signals favor Yen pair sellers.
• RSI conditions suggest bottom-picking around golden Fibonacci ratio.
• Multiple hurdles stand tall to challenge Yen buyers.

The pair currently trades last at 139.352.

The previous day high was 140.45 while the previous day low was 139.25. The daily 38.2% Fib levels comes at 139.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.99, expected to provide resistance.

USD/JPY holds a lower ground near the intraday bottom surrounding 139.35 heading into Tuesday’s European session. In doing so, the Japan Yen (JPY) pair defends the previous day’s bearish bias with a one-week-old ascending triangle formation.

Apart from the bearish triangle, the downbeat MACD signals and the quote’s sustained trading below the 100-Exponential Moving Average (EMA) also favor the USD/JPY sellers.

However, a clear downside break of the stated triangles’ bottom line, around 139.30 by the press time, becomes necessary for the Yen pair seller’s confirmation.

Even so, the RSI (14) is near the oversold region and hence the 61.8% Fibonacci retracement of its May 19-30 upside, near 138.75, also known as the golden Fibonacci ratio, can challenge the USD/JPY bears.

In a case where the Yen pair drops below 138.75 Fibonacci support, the 138.00 round figure and the early May peak of around 137.70 could gain the market’s attention.

On the flip side, the 100-EMA level of 139.65 restricts the immediate upside of the USD/JPY pair. Following that, the 140.00 psychological magnet and the stated triangle’s top line near 140.45-50, can challenge the bulls ahead of directing them to the multi-month high marked in May around 140.91.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.41 at the time of writing. Pair opened at 139.58 and is trading with a change of -0.12% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 138.09, 50 SMA 135.48, 100 SMA @ 134.07 and 200 SMA @ 137.3.

The previous day high was 140.45 while the previous day low was 139.25. The daily 38.2% Fib levels comes at 139.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.99, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 139.07, 138.56, 137.87
• Pivot resistance is noted at 140.27, 140.96, 141.48

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group