#USDJPY @ 136.371 -imp levels: sinks 100 pips and is losing more than 0.70% due to mixed US economic data.

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• USD/JPY sinks 100 pips and is losing more than 0.70% due to mixed US economic data.
• A bearish-engulfing candle pattern in the daily chart could pave the way for further losses.
• The USD/JPY is trading below the 100-hour EMA, with sellers keeping the fort afloat.

The pair currently trades last at 136.371.

The previous day high was 137.65 while the previous day low was 136.7. The daily 38.2% Fib levels comes at 137.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 137.06, expected to provide resistance.

The USD/JPY plunges from weekly highs around 137.70 as US recession fears were fueled by mixed US economic data, dropping into contractionary territory, namely S&P Global Services and Composite PMIs, while the Manufacturing expanded. Nevertheless, traders took advantage of an overpriced US dollar and sent the major down. At the time of writing, the USD/JPY is trading at 136.39, below its opening price by 0.80%.

The daily chart shows that a bearish-engulfing candle pattern is emerging, which could pave the way for further losses. However, it’s worth noting that the pair tested the August 19 daily low at 135.71, but sellers could not hold buyers from reclaiming the 136.00 figure. Even though a bearish-engulfing candle pattern is bearish, sellers will face solid support at 135.71, followed by the 50-day EMA at 135.52.

The one-hour scale depicts that the USD/JPY broke below a confluence of the S1 daily pivot and a downslope trendline, exacerbating a fall towards the S3 pivot at 135.91, where USD buyers stepped in. Nevertheless, they’re facing resistance at the 100-hour EMA at 136,39, which, once cleared, could pave the way towards the 137.00 figure. Nonetheless, the most likely scenario is that the USD/JPY head downwards due to a confluence of the indicators tilting the pair as bearish,

Therefore, the USD/JPY first support will be the S3 pivot at 135-90. Break below will expose the August 7 high at 135.58, followed by the 200-hour EMA at 134.98.

Technical Levels: Supports and Resistances

USDJPY currently trading at 136.39 at the time of writing. Pair opened at 137.47 and is trading with a change of -0.8 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 134.5, 50 SMA 135.54, 100 SMA @ 132.12 and 200 SMA @ 123.91.

The previous day high was 137.65 while the previous day low was 136.7. The daily 38.2% Fib levels comes at 137.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 137.06, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 136.9, 136.33, 135.95
• Pivot resistance is noted at 137.85, 138.22, 138.79

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