USD/JPY PRICE ANALYSIS: STUMBLES BELOW 134.00 AND THE 200-DMA ON SOFT USD

USD/JPY bounced back from the day’s high of 120 during the USD bid. USD/JPY: Daily close below 200 DMA opens door to a drop to 131.70s. US Dollar (USD) gave up earlier gains on positive economic data from the United States (US) and fell 0.52% against the Japanese Yen (JPY). At the time of writing, USD/JPY is trading at 13 .63, below the 200-day exponential moving average (EMA), as the yen prepares to end the week up 3.26%. USD/JPY PRICE ANALYSIS: TECHNICAL BREAKDOWN On the daily chart at USD/JPY, the pair is bearish after breaking the 200-day EMA and the five-month high-level support trend. However, the upbeat US data weakened the rally to Friday’s high of 135.98. However, the relative strength index (RSI) and rate of change (RoC) of the bearish area indicated that the momentum of the sellers has accelerated. In the end, USD/JPY erased those gains and some others. If USD/JPY reaches a daily close below the 200-day EMA of 13 .99, this could pave the way for further bearish action. The key support levels for USD/JPY is the psychological 13 .00. A breach of the latter could open the door to a 220-point decline to the August 11 low of 131.73, followed by the August low of 130.39.

Michael Cooper

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