USD/JPY Price Analysis: Tumbles below 135.00, slumps below the 20 and 100-day EMA

USD/JPY slides 0.73% after three days of bullish action as US inflation cools down.
The pair drops below key daily moving averages, signaling the potential for further downside.

Christian Borjon Valencia FXStreet

The USD/JPY snaps three days of gains, slides below the 135.00 figure, and distanced from the 20 and 100-day Exponential Moving Average (EMA) at 134.53 and 134.24, respectively, after US inflation cooled down. The fall of the US 10-year Treasury bond yield weighed on the USD/JPY pair due to its close correlation. At the time of writing, the USD/JPY is trading at 134.22, down 0.73%.

USD/JPY Price Analysis: Technical outlook

Given that the USD/JPY dropped below crucial daily moving averages, the USD/JPY bias shifted neutral. On its way south, the USD/JPY pair fell below dynamic support levels, like the 20 and 100-day EMAs, opening the door to test the 134.00 psychological price level.

If USD/JPY breaks below the latter, the USD/JPY pair would challenge the 50-day EMA at 133.97 before testing the 200-day EMA at 133.87. A breach of the latter will expose the May 4 swing low of 133.49.

Conversely, if USD/JPY reclaims the 20-day EMA at 134.53, the next resistance would be the 135.00 figure, followed by the May 10 high of 135.47. Once cleared, the next demand area would be the May 2 high at 137.77.

Oscillators turned bearish, as the Relative Strength Index (RSI) indicator crossed below the 50-mid line, while the 3-day Rate of Change (RoC) records negative readings.

Trend: Below 135.00, further downside expected.

USD/JPY Price Chart – Daily chart

USD/JPY

Overview
Today last price	134.28
Today Daily Change	-0.91
Today Daily Change %	-0.67
Today daily open	135.19

Trends
Daily SMA20	134.56
Daily SMA50	133.84
Daily SMA100	132.85
Daily SMA200	137.02

Levels
Previous Daily High	135.36
Previous Daily Low	134.72
Previous Weekly High	137.78
Previous Weekly Low	133.5
Previous Monthly High	136.56
Previous Monthly Low	130.63
Daily Fibonacci 38.2%	135.12
Daily Fibonacci 61.8%	134.97
Daily Pivot Point S1	134.82
Daily Pivot Point S2	134.45
Daily Pivot Point S3	134.18
Daily Pivot Point R1	135.46
Daily Pivot Point R2	135.73
Daily Pivot Point R3	136.1

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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