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.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.