USD/JPY Price Analysis: Seesawed around 131.90s on mixed mood

USD/JPY falters to extend its downtrend after forming a bearish engulfing candle pattern.
The RSI and the RoC suggest that the USD/JPY might resume downwards, though it needs the USD/JPY to fall below 131.30.

Christian Borjon Valencia FXStreet

The USD/JPY is almost flat as Monday’s New York session wanes, printing a doji preceded by a bearish engulfing candle pattern that failed to trigger downward action. The USD/JPY dived as low as 131.30, still almost unchanged, down by 0.17%. At the time of typing, the USD/JPY is trading at 131.88.

USD/JPY Price Analysis: Technical outlook

After testing the 200-day Exponential Moving Average (EMA) at around 134.70s on Friday, the USD/JPY remained almost unchanged as risk appetite improved and safe-haven peers weakened. Therefore, the USD/JPY seesawed between the high/low of 132.65-131.30 before stabilizing around 131.80s, without buyers/sellers having the upper hand. Should be said that the Relative Strength Index (RSI) portrays the pair as bearish biased, though the Rate of Change (RoC) shows momentum heading downwards.

Hence, the USD/JPY might resume its downtrend, but it would need to hurdle some support levels on its way down. The USD/JPY first support would be the January 9 daily low of 131.30. Break below will expose the 131.00 figure, followed by the January 4 swing low of 129.92 and the YTD low of 129.50.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	131.88
Today Daily Change	-0.22
Today Daily Change %	-0.17
Today daily open	132.1

Trends
Daily SMA20	133.72
Daily SMA50	138.02
Daily SMA100	140.95
Daily SMA200	136.46

Levels
Previous Daily High	134.78
Previous Daily Low	131.99
Previous Weekly High	134.78
Previous Weekly Low	129.51
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	133.06
Daily Fibonacci 61.8%	133.71
Daily Pivot Point S1	131.14
Daily Pivot Point S2	130.17
Daily Pivot Point S3	128.35
Daily Pivot Point R1	133.92
Daily Pivot Point R2	135.74
Daily Pivot Point R3	136.7

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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