USDJPY: Bounces off important support, but "Death Cross" makes sellers optimistic
USDJPY ends a four-day decline and rebounds from its lowest point in a month as traders start the US inflation week with mixed feelings, especially after a disappointing employment report on Friday.
Sellers are in control
Despite the brief pause to recover from an ascending support line from late December 2023, the "Death Cross" on the moving averages and a possible bearish cross on the MACD suggest that sellers remain dominant.
Technical levels to watch
Given that the RSI is nearly oversold and the market is adjusting its previous movements, USDJPY might continue its recent recovery towards a resistance zone from a month ago, around 143.45-60. After that, a downward-sloping resistance line from early August, near 146.60, will challenge buyers before they can take full control. If they succeed, the 50% Fibonacci retracement level from July 2023 to 2024, around 149.60, and the 200-SMA level at 151.05 could attract more buying interest.
On the other hand, sellers might look for a daily close below a long-term rising support line, around 141.90. They should also watch for the late 2023 low around 140.25 and the 140.00 level, which could provide additional support before aiming for the mid-2023 low of 137.25.
What next?
The USDJPY pair might see a rebound as the market consolidates before the important US inflation data is released on Thursday. However, the bearish trend will continue unless the price stays below the 200-SMA.
