USDJPY activates awaited fall, 127.00 appears nearby supportUSDJPY remains pressured around a two-week low, despite the latest rebound from 127.50, after the yen pair slipped beneath an upward sloping support line from March-end. The south-run recently broke 100-SMA and is well on the way to the 127.00-126.90 zone comprising 200-SMA and multiple levels marked in a month. It’s worth noting that the pair’s downside past 126.90 may wait for the RSI to turn normal, currently oversold, if not then the 61.8% Fibonacci retracement (Fibo.) of late March to early May run-up, near 125.00 should return to the charts.
Meanwhile, recovery moves need validation from the 129.40 level comprising the 100-SMA and April 20 swing high. Following that, the previous support line and the monthly peak, respectively around 130.50 and 131.35, could lure USDJPY bulls. In a case where the yen pair successfully rises past 131.35, buyers are entitled to challenge the year 2002 high surrounding 135.20.
Overall, USDJPY bulls have been tired of late and the latest breakdown triggers the required bearish signal. USDJPY is all set for 125.00 revisitBe it a clear bounce off the 50% Fibonacci retracement (Fibo.) of an upswing from mid-March or sustained trading beyond the one-week-old rising trend line, not to forget the 50-SMA, USDJPY has it all to revisit the multi-year top poked during late March. That being said, the 124.00 threshold may offer an intermediate halt during the run-up targeting the recent top surrounding 125.10. In a case where the bulls gain acceptance beyond 125.10, 61.8% Fibonacci expansion of the pair’s moves from March 15 to 31, around 125.90, quickly followed by the 126.00 round figure will be in focus.
Meanwhile, the 50-SMA level of 122.25 and a seven-day-old rising trend line, around 121.70, act as immediate supports to watch during the quote’s pullback. Following that, the 61.8% Fibo. level of 120.50 and the 100-SMA level surrounding 120.35 will challenge the USDJPY bears. Should the quote drops below 120.35, the 120.00 psychological magnet will be the last defense for bulls, a break of which will enable sellers to retake control. USDJPY renews five-year high, 118.70 challenges further upsideUSDJPY cheers the greenback’s robust strength ahead of the Fed’s widely anticipated rate-hike to refresh five-year high. In doing so, the yen pair defied an upward sloping trend channel from late November, backed by the bullish MACD signals. However, overbought RSI and double tops around 118.65 could challenge the quote’s further upside. In a case where the pair rallies past 118.70, the 120.00 psychological magnet will offer an intermediate halt on the way to the early January 2016 peak surrounding 121.70.
Meanwhile, a pullback is more likely and could lure risk-taking sellers if the quote offers a daily closing below 117.70. Following that, the highs marked in January and February of 2022, near 116.35, will be on the bear’s radar. Though, the 100-DMA and an ascending trend line from late 2021, respectively around 114.60 and 114.35, will act as the last defenses for the pair buyers, a break of which will give controls to the sellers.
Overall, USDJPY may witness a pullback but bulls can keep the reins until the quote drops below 114.35.
Short
