USDJPY fades the previous day’s corrective bounce off a five-month low amid sluggish markets on the final trading day of 2023. In doing so, the Yen pair extends the mid-week pullback from 200-SMA even as the oversold RSI (14) and the sluggish MACD signals challenge bears. Also putting a floor under the risk-barometer pair is a 50% Fibonacci retracement of the March-November upside, as well as May’s peak, surrounding 140.80. It’s worth noting, however, that the quote’s sustained trading below 140.80 makes it vulnerable to drop toward a broad horizontal support zone comprising levels marked since early March, between 137.90-70.
Meanwhile, a corrective bounce could aim for the 200-SMA level of 143.00 whereas a seven-week-old descending trend line, close to 143.40 at the latest, will test the USDJPY buyers afterwards. Should the Yen pair manage to defend the recovery moves past 143.40, June’s peak of around 145.10 will be on the bull’s radar. Following that, a gradual run-up toward 148.00 and the 150.00 psychological magnet can’t be ruled out.
Overall, the USDJPY pair appears bearish even if a corrective bounce appears imminent.
