USDJPY remains on the bear’s radar after reversing from a seven-month-long support-turned-resistance line and the 50-SMA the last week. Apart from that, the quote’s failure to defend a corrective bounce from the 100-SMA support and bearish MACD signals also keep sellers hopeful. However, the RSI conditions and a long line of top-tier data from the US and Japan challenge the Yen pair’s heavy fall. The same highlights the 100-SMA support, close to 155.30 by the press time, a break of which will quickly drag the quote to the previous monthly bottom of around 154.50 and then to May’s low of 151.85. It’s worth mentioning that a slew of peaks and troughs stand ready to challenge the bears around 150.80 and the 150.00 threshold in a case where the prices drop beneath 151.85. Following that, the bulls have to leave the battlefield and sellers can approach March’s low of near 146.50.
Alternatively, a convergence of the 50-SMA and the aforementioned previous support line, close to the 158.00 threshold, guards the immediate upside of the USDJPY pair. In a case where the upbeat US catalysts allow buyers to conquer the 158.00 hurdle, they can aim for the 160.00 psychological magnet before a three-month-old horizontal resistance near 160.30 challenges the advances. It should be observed that the Yen pair’s successful trading beyond the 160.30 resistance enables the bulls to refresh the multi-year high marked earlier in July by challenging an ascending resistance from late April, around 162.55 at the latest.
Overall, USDJPY is likely to decline further but the room towards the south appears limited.
