As noted above, USD/JPY has seen a particularly steep decline over the last week+, though rates are now approaching their most oversold levels of the year. As the daily chart shows, USD/JPY sliced through its 50-day EMA and rising trend line support without so much as a momentary pause earlier this week, suggesting that a continuation down to previous-resistance-turned-support at 138.00 was likely.
As we go to press, USD/JPY is seeing its downside momentum stall so far today as it nears that support level, so a bounce back toward 139.00 or 140.00 heading into the weekend would not be surprising. That said, given this week’s big technical breakdown, the bullish medium-term technical bias of the past few months is unlikely to return unless/until the pair can definitively recapture the 140.00 handle.
While not the most likely scenario, a bearish acceleration through 138.00 support would expose the 200-day EMA around 136.50 next.
As we go to press, USD/JPY is seeing its downside momentum stall so far today as it nears that support level, so a bounce back toward 139.00 or 140.00 heading into the weekend would not be surprising. That said, given this week’s big technical breakdown, the bullish medium-term technical bias of the past few months is unlikely to return unless/until the pair can definitively recapture the 140.00 handle.
While not the most likely scenario, a bearish acceleration through 138.00 support would expose the 200-day EMA around 136.50 next.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.