Technical Analysis – USDJPY plunges towards 200-day SMA
USDJPY hits lowest since May
Immediate support at 200-day SMA
Technical oscillators indicate more losses
USDJPY has been declining considerably after the pullback from the 50-day simple moving average (SMA) at 157.90, sending the markets towards a fresh almost two-month low near the 200-day SMA. The losses over the past four sessions have reached 3.8%, taking the price well below its uptrend line.
The technical oscillators are endorsing this bearish view. The stochastics have slipped below the 20 level, while the RSI has crossed into oversold territory.
Immediate support level could come from the 200-day SMA near 151.80, which may act as a strong turning point at the market. A slip beneath this level could meet the 50.0% Fibonacci retracement level of the up leg from 140.20 to 161.94 at 151.10 and steeper downside movements could change the broader outlook to bearish.
On the other hand, a potential bounce off could take the market up to the 38.2% Fibonacci of 153.65 ahead of the 154.50 resistance. Even higher, the 23.6% Fibonacci of 156.86 and the 157.90 bar are coming next.
All in all, USDJPY is showing signs for more downside pressures, but the price needs to plunge beneath the 200-day SMA.Related Assets
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