USD/JPY Price Analysis: Inches closer to 130.70 support during three-day downtrend

USD/JPY takes offers to refresh intraday low, drops for the third consecutive day.
Clear U-turn from the key DMAs, unimpressive oscillators keep sellers hopeful.
Ascending trend line from mid-January lures bears; bulls remain off the table below 134.00.

Anil Panchal FXStreet

USD/JPY takes offers to refresh the intraday low near 131.40 as Tokyo opens on Wednesday. In doing so, the yen pair drops for the third consecutive day after reversing from the 100-DMA during the last week.

Not only the U-turn from the 100-DMA but a following downturn past convergence of the 50-DMA and 23.6% Fibonacci retracement level of its October 2022 to January 2023 fall, around 133.05 at the latest, also keep USD/JPY bears hopeful.

Adding strength to the downside bias is the steady RSI (14) and sluggish MACD signals.

However, the RSI level is below the 50 mark and hence suggests the dip-buying, which in turn highlights an upward-sloping support line from January 16, close to 130.70 at the key level to watch for the USD/JPY bears.

Should the quote drop below 130.70, the odds of witnessing a break of the 13.0.00 psychological magnet can’t be ruled out.

Alternatively, the aforementioned resistance confluence of around 133.05, comprising 50-DMA and 23.6% Fibonacci retracement, restricts short-term advances of the USD/JPY pair.

Following that, the 100-DMA and a downward-sloping trend line from late October 2022, respectively near 133.65 and 135.00 in that order, could challenge the Yen pair buyers.

It’s worth noting, however, that the USD/JPY run-up beyond 135.00 won’t hesitate to challenge the Year-To-Date (YTD) high surrounding 137.90.

USD/JPY: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	131.51
Today Daily Change	-0.90
Today Daily Change %	-0.68%
Today daily open	132.41

Trends
Daily SMA20	132.82
Daily SMA50	133.01
Daily SMA100	133.72
Daily SMA200	137.28

Levels
Previous Daily High	133.76
Previous Daily Low	132.2
Previous Weekly High	133.6
Previous Weekly Low	130.41
Previous Monthly High	137.91
Previous Monthly Low	129.64
Daily Fibonacci 38.2%	132.8
Daily Fibonacci 61.8%	133.16
Daily Pivot Point S1	131.82
Daily Pivot Point S2	131.24
Daily Pivot Point S3	130.27
Daily Pivot Point R1	133.38
Daily Pivot Point R2	134.34
Daily Pivot Point R3	134.93

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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