• USD/JPY remains downtrend but is about to form a bullish harami candle pattern, suggesting an upward correction on the cards.
  • USD/JPY Price Analysis: Once it clears 129.50, it could rally towards 131.57 before turning neutral.

USD/JPY slumps in a choppy New York trading session and edges beneath 130.00 after a round of US economic data, suggesting the US Federal Reserve (Fed) could begin to hike rates in 25 bps sizes. Therefore, the Japanese Yen (JPY) strengthened, so the USD/JPY is down 0.24%. At the time of writing, the USD/JPY is trading at 129.92.

USD/JPY Price Analysis: Technical outlook

The USD/JPY remains downward biased as the pair has remained below the 20-day Exponential Moving Average (EMA) at 130.60. Friday’s price action remains contained within the boundaries of Thursday’s high and low, opening the door for a bullish harami candlestick formation, also known as an inside day, in the regular bar chart jargon. Therefore, the USD/JPY could print a leg-up before resuming its downtrend.

Hence, the USD/JPY next resistance would be 130.00, followed by the confluence of the 20-day EMA and a downslope trendline around 130.60, which, once cleared, might send the USD/JPY climbing towards the January 24 swing high at 131.11. Break above will expose the January 18 high of 131.57.

As an alternate scenario, the USD/JPY could fall towards 129.49, January’s 27 low. Once broken, the next support would be the weekly low of 129.02, followed by the YTD low at 127.21.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price 129.92
Today Daily Change -0.33
Today Daily Change % -0.25
Today daily open 130.25
 
Trends
Daily SMA20 130.45
Daily SMA50 134.04
Daily SMA100 139.59
Daily SMA200 136.76
 
Levels
Previous Daily High 130.62
Previous Daily Low 129.02
Previous Weekly High 131.58
Previous Weekly Low 127.22
Previous Monthly High 138.18
Previous Monthly Low 130.57
Daily Fibonacci 38.2% 130.01
Daily Fibonacci 61.8% 129.63
Daily Pivot Point S1 129.31
Daily Pivot Point S2 128.37
Daily Pivot Point S3 127.71
Daily Pivot Point R1 130.9
Daily Pivot Point R2 131.56
Daily Pivot Point R3 132.5

 

 

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