USD/JPY Price Analysis: Stumbles to fresh weekly lows around 132.10s

USD/JPY drops 0.70% on risk aversion and a softer US Dollar.
USD/JPY Price Analysis: Downward biased, could extend its losses below 130.00, towards May lows around 126.00.

Christian Borjon Valencia FXStreet

The USD/JPY is falling for the second consecutive day as risk aversion continues to drive the last trading day of 2022, as shown by Wall Street registering losses. The USD/JPY extended its fall below the December 29 daily low of 132.87 and stabilized at current exchange rates after hitting a daily low of 131.50. At the time of typing, the USD/JPY is trading at 132.11.

USD/JPY Price Analysis: Technical outlook

From a daily chart perspective, the USD/JPY might continue to drop further, but until it breaks the December 20 daily low of 130.56, that could pave the way to test 130.00. At the time of writing, the 20-day Exponential Moving Average (EMA) crossed below the 200-day EMA, exacerbating further downside action. Since peaking at around 151.94 in October, the USD/JPY has recorded successive series of lower highs and lows, confirming the downtrend. Additionally, the Relative Strength Index (RSI) and the Rate of Change (RoC) are in bearish territory, suggesting that sellers are in charge.

That said, the USD/JPY first support would be 130.56, followed by the figure at 130.00. The break below will expose the May 24 swing low of 126.36, followed by the March 31 low of 121.27.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price	132.1
Today Daily Change	-0.92
Today Daily Change %	-0.69
Today daily open	133.02

Trends
Daily SMA20	135.06
Daily SMA50	139.89
Daily SMA100	141.12
Daily SMA200	136.18

Levels
Previous Daily High	134.5
Previous Daily Low	132.88
Previous Weekly High	137.48
Previous Weekly Low	130.57
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	133.5
Daily Fibonacci 61.8%	133.88
Daily Pivot Point S1	132.43
Daily Pivot Point S2	131.84
Daily Pivot Point S3	130.81
Daily Pivot Point R1	134.06
Daily Pivot Point R2	135.09
Daily Pivot Point R3	135.68

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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