The USDJPY currency pair has reached a new lowest point for the week at 139.729, following a recent break of a support line that had been in place for two weeks. According to the viewpoint of @nehcap, it is anticipated that there will be further decline in value.

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• USD/JPY renews weekly low after breaking fortnight-old rising support line.

The pair currently trades last at 139.729.

The previous day high was 141.18 while the previous day low was 139.92. The daily 38.2% Fib levels comes at 140.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.7, expected to provide resistance.

USD/JPY drops for the fourth consecutive day as it breaks a two-week-old rising support line, now immediate resistance, to refresh the weekly low near 139.40, close to 139.70 by the press time of early Thursday morning in Europe.

In doing so, the Yen pair also justifies the market’s chatters that the Bank of Japan (BoJ) is overdue for a policy tweak. Also exerting downside pressure on the Yen price could be the broad-based US Dollar weakness despite the Federal Reserve’s (Fed) hawkish rate hike amid fears of a sooner end to the tightening spell. That said, the DXY prints a three-day losing streak, down 0.24% intraday near 100.78 by the press time.

Amid these plays, the USD/JPY pair is likely to extend the latest fall towards the 50% Fibonacci retracement of its May-June upside, near 139.30.

However, a convergence of an ascending support line from early May and the 61.8% Fibonacci retracement, near 137.90, appears a tough nut to crack for the Yen pair sellers.

Alternatively, a corrective bounce needs validation from the previous support line stretched from mid-July, close to 140.40, as well as a downward-sloping resistance line from early June, close to 141.15 by the press time.

Even so, the 200-SMA level of around 141.65 at the latest will act as the final defense of the USD/JPY bears.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.71 at the time of writing. Pair opened at 140.24 and is trading with a change of -0.38% % .

The pair is trading below its 20 Daily moving average @ 141.39, below its 50 Daily moving average @ 140.88 , above its 100 Daily moving average @ 137.32 and above its 200 Daily moving average @ 136.79

The previous day high was 141.18 while the previous day low was 139.92. The daily 38.2% Fib levels comes at 140.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.7, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 139.72, 139.19, 138.45
• Pivot resistance is noted at 140.98, 141.71, 142.24

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