USD/JPY Price Analysis: Yen eyes 140.00 within trend widening chart formation
|- USD/JPY drops to the lowest level in three weeks, down for the fourth consecutive day.
- Downside break of 21-DMA, 61.8% Fibonacci retracement joins bearish MACD signals to favor Yen pair sellers.
- Multiple hurdles to challenge USD/JPY bulls within bullish megaphone pattern.
USD/JPY remains on the back foot for the fourth consecutive day as sellers attack May’s peak below 141.00, down 0.50% intraday near 140.60 heading into Tuesday’s European session.
In doing so, the Yen pair renews a three-week low while extending the previous week’s downside break of the 21-DMA and 61.8% Fibonacci retracement level of October 2022 to January 2023 downside. It’s worth noting that the bearish MACD signals add strength to the downside bias.
With this, the risk-barometer pair appears all-set to break the 140.00 psychological magnet with an aim to test the 50% Fibonacci retracement level surrounding 139.60.
However, the bottom line of a bullish megaphone trend-widening chart pattern comprising levels marked since late March, around 139.00 by the press time, appears a tough nut to crack for the USD/JPY bears.
Following that, the 200-DMA and an ascending support line from January, respectively near 137.20 and 134.90, will be in the spotlight for the Yen pair sellers.
Alternatively, the 61.8% Fibonacci retracement and the 21-DMA, close to 142.50 and 142.75 in that order, restrict the short-term upside of the USD/JPY pair.
More importantly, a horizontal area encompassing multiple levels marked since October 2022, near 145.10-15, appears a tough nut to crack for the USD/JPY bulls.
USD/JPY: Daily chart
Trend: Limited downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.