Logout
Are you sure you want to exist?
Denis Sergienko • 2022-11-14

USDJPY bears brace for 136.00

USDJPY bears brace for 136.00

A clear downside break of the 100-DMA, as well as a daily closing below July’s peak, keeps USDJPY sellers hopeful. However, a convergence of the 61.8% Fibonacci retracement level of the May-October upside and an upward-sloping support line from May 24, around 136.00, appears a tough nut to crack for the bears. Following that, a slump toward the 200-DMA support of 132.70 can’t be ruled out. However, an area comprising multiple levels marked since late April, around 131.25-50, could challenge the pair’s further downside.

Alternatively, recovery moves need to stay beyond the 100-DMA support level surrounding 140.75-80 to trigger short-term corrective buying. Even so, 38.2% and 23.6% Fibonacci retracements, close to 142.20 and 145.90 in that order, could challenge the USDJPY buyers. In a case where the pair remains firmer past the 146.00 round figure, the odds of witnessing a run-up targeting the fresh 24-year high, currently around 152.00, can’t be ruled out.

Overall, USDJPY sellers hold control but the downside room appears limited.

Join us on FB and Twitter to stay updated on the latest market events.