USD/JPY drops to fresh lows under 133.00 on the back of a weaker US Dollar


  • Japanese Yen among top performers on Thursday despite higher equity prices.
  • US Dollar turns negative as Wall Street soars.
  • USD/JPY is ending a four-day positive streak with a 1% loss.

The USD/JPY broke below the 133.45/50 zone after the beginning of the American session and tumbled to 132.90, a two-day low. The pair remains under pressure, hovering around 133.00, down 1% so far for the day.

The decline took place amid a weaker US Dollar across the board hit by an improvement in risk sentiment. US bond yields remained steady. The Dow Jones was rising by more than 300 points while the Nasdaq was adding 2.45%.

US economic data showed Initial Jobless Claims rose to 225K during the week ended December 24, in line with expectations while Continuing Claims rose to 1.71 million, the highest level since February. The numbers did not have an impact. Price action remains subdue.

Short-term outlook

The USD/JPY is moving with a bearish bias in the very short-term. A recovery above the 133.45/50 level would alleviate the bearish pressure; while above 133.85 the bias should change to neutral/bullish.

The Momentum is about to cross 100 in four-hour charts and price is holding below key moving averages. A consolidation below 133.00 would keep the path clear to a slide to the next strong support located at 132.45/50 (weekly low).

Technical levels

USD/JPY

Overview
Today last price 133.11
Today Daily Change -1.38
Today Daily Change % -1.03
Today daily open 134.49
 
Trends
Daily SMA20 135.18
Daily SMA50 140.23
Daily SMA100 141.12
Daily SMA200 136.13
 
Levels
Previous Daily High 134.5
Previous Daily Low 133.36
Previous Weekly High 137.48
Previous Weekly Low 130.57
Previous Monthly High 148.82
Previous Monthly Low 137.5
Daily Fibonacci 38.2% 134.06
Daily Fibonacci 61.8% 133.79
Daily Pivot Point S1 133.73
Daily Pivot Point S2 132.98
Daily Pivot Point S3 132.59
Daily Pivot Point R1 134.87
Daily Pivot Point R2 135.26
Daily Pivot Point R3 136.01

 

 

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