USDJPY Technical Analysis | Forexlive
On the daily USDJPY chart below, we
can see that the pair recently pulled back to the red long period moving
average and the 50% Fibonacci
retracement level. The correction started because we got some
hot US economic data like the S&P
Global US PMIs that sent Treasury yields and USD/JPY higher.
Recently, though we got some bad
economic reports starting with the ISM
Manufacturing PMI on Monday and then the US
Job Openings yesterday. Both have missed expectations by a
notable margin and the market switched again to price the recession with lower
Treasury yields and lower USD/JPY.
On the 4 hour chart below, we can
see that the price bounced on the trendline yesterday before breaking below
it as US Job Openings missed expectations. The moving averages have crossed
again to the downside and that will give the sellers more conviction.
Today we have the US ISM Services PMI, which is a very important
report as the services sector is the one that remained resilient despite
aggressive tightening and recession fears. A beat would send the pair higher
while a miss would send it lower. The next target for the sellers is the low at
129.60.
On the 1 hour chart below, we can
more closely the short-term price action. We can see that the price bounced on
the 132.20 support and retested the broken
trendline before falling and then selling off as US data missed expectations.
Today we may see a pullback to
the broken support now turned resistance where we have also the 50% Fibonacci
retracement level. It’s more likely that we’ll see such a retracement only if
the data beats expectations, as a miss would send the pair lower immediately.