USD/JPY fell as the North American session progressed and tumbled below the 130.00 figure, as buyers failed to crack the 20-day Exponential Moving Average (EMA) at 130.74. Factors like a soft US Dollar (USD) and falling US Treasury bond yields are two fundamental reasons for renewed Japanese Yen (JPY) strength. At the time of writing, the USD/JPY is trading at 129.77.
Tuesday’s session was characterized by the USD/JPY reaching a weekly high at 131.11, slightly above the 20-day EMA, but dropped to 130.10. Today, the USD/JPY hit a daily high of 130.58 but extended its losses, while the 50-day Exponential Moving Average (EMA) crossed beneath the 200-day EMA, meaning a death cross emerged in the daily, suggesting that further downside is expected.
Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) aim downwards, supporting lower prices.
Therefore, the USD/JPY first support would be the day’s low of 129.26. Break below will expose the 129.00 psychological level, followed by the January 20 swing low at 128.34 and the YTD low of 127.21. As an alternate scenario, if the USD/JPY reclaims 130.00, the pair could challenge the 20-day EMA.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2023 Teletrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.