- USD/JPY is almost flat during the North American session.
- Oscillators remain in bearish territory, but price action signals consolidation.
- USD/JPY Price Analysis: Sellers reclaiming 132.21 would exacerbate a fall toward 127.20s.
USD/JPY rises after dropping to a fresh four-week low at 131.71 but stages a comeback and has reclaimed the 133.00 figure. Nevertheless, a wall of resistance with all the daily Exponential Moving Averages (EMAs) above the exchange rate supports a bearish bias. Hence, the USD/JPY is trading at 133.56, above its opening price by a decent 0.14%.
USD/JPY Price action
The USD/JPY is neutral biased after the 20, 50, 100, and 200-day EMAs intersected at around the 134.05-92 area. However, oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC), suggest that sellers are in charge. But price action, as the leading indicator, needs sellers to reclaim the February 10 daily low at 129.79, which could open the door for further downside.
For a bearish continuation, the USD/JPY must fall below the March 15 low of 132.21. Once cleared, the 132.00 figure would be for grabs. Seller's next stop would be the February 2 daily low at 128.08, followed by the YTD low at 127.21.
In an alternate scenario, the USD/JPY first resistance would be the 200-day EMA at 134.05. A breach of the latter would expose the 50 and 20-day EMAs, each at 134.13 and 134.59, ahead of testing the 100-day EMA at 134.92. Once broken, the buyers would reclaim 135.00.
USD/JPY Daily chart
USD/JPY Technical levels
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