USD/JPY Price Analysis: Yen eyes 140.00 within trend widening chart formation

USD/JPY drops to the lowest level in three weeks, down for the fourth consecutive day.
Downside break of 21-DMA, 61.8% Fibonacci retracement joins bearish MACD signals to favor Yen pair sellers.
Multiple hurdles to challenge USD/JPY bulls within bullish megaphone pattern.

Anil Panchal FXStreet

USD/JPY remains on the back foot for the fourth consecutive day as sellers attack May’s peak below 141.00, down 0.50% intraday near 140.60 heading into Tuesday’s European session.

In doing so, the Yen pair renews a three-week low while extending the previous week’s downside break of the 21-DMA and 61.8% Fibonacci retracement level of October 2022 to January 2023 downside. It’s worth noting that the bearish MACD signals add strength to the downside bias.

With this, the risk-barometer pair appears all-set to break the 140.00 psychological magnet with an aim to test the 50% Fibonacci retracement level surrounding 139.60.

However, the bottom line of a bullish megaphone trend-widening chart pattern comprising levels marked since late March, around 139.00 by the press time, appears a tough nut to crack for the USD/JPY bears.

Following that, the 200-DMA and an ascending support line from January, respectively near 137.20 and 134.90, will be in the spotlight for the Yen pair sellers.

Alternatively, the 61.8% Fibonacci retracement and the 21-DMA, close to 142.50 and 142.75 in that order, restrict the short-term upside of the USD/JPY pair.

More importantly, a horizontal area encompassing multiple levels marked since October 2022, near 145.10-15, appears a tough nut to crack for the USD/JPY bulls.

USD/JPY: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	140.72
Today Daily Change	-0.59
Today Daily Change %	-0.42%
Today daily open	141.31

Trends
Daily SMA20	142.86
Daily SMA50	139.84
Daily SMA100	136.87
Daily SMA200	137.21

Levels
Previous Daily High	143
Previous Daily Low	141.28
Previous Weekly High	144.91
Previous Weekly Low	142.07
Previous Monthly High	145.07
Previous Monthly Low	138.43
Daily Fibonacci 38.2%	141.94
Daily Fibonacci 61.8%	142.35
Daily Pivot Point S1	140.72
Daily Pivot Point S2	140.14
Daily Pivot Point S3	139
Daily Pivot Point R1	142.45
Daily Pivot Point R2	143.59
Daily Pivot Point R3	144.18

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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