The USD/JPY fell for the second day in a row after retreating from a two-month-old downward resistance line, falling 0.35% intraday near 132.60 in ear
The
USD/JPY fell for the second day in a row after retreating from a two-month-old downward resistance line, falling 0.35% intraday near 132.60 in early Friday. In doing so, the Yen pair validates the previous day’s downward violation of a one-week-old ascending support line, which is now resistance near 133.90.
However, the price is falling towards a horizontal support zone comprised of various levels established since April, which is located around 131.50–30. However, additional losses above 131.30 appear to be limited due to the sluggish MACD indications.
If the USD/JPY fails the 131.30 support, the recent bottom at 130.55, which is also the lowest level in four months, will be in focus.
The USD/JPY bears are also likely to be challenged by the August month’s low around 130.40 and the 130.00 round figure, a breach of which may easily pull the quote back to May’s low near 126.35.
Alternatively, the nearby support-turned-resistance line, about 133.90, protects the USD/short-term JPY’s rebound. Beyond that, a straight-down resistance barrier from October 21 and the 21-day moving average (SMA) could test the bulls around 134.20 and 135.00, respectively.
However, a convergence of the 200-DMA and the 61.8% Fibonacci retracement line of the pair’s May-October upside, near 136.25, appears to be a difficult nut to crack for USD/JPY investors. Let’s consider taking selling trades today.
news.google.com
