USD/JPY Price Analysis: Buyers stepped in around the 200-DMA and lifted the pair toward 138.00
15.12.2022, 23:34

USD/JPY Price Analysis: Buyers stepped in around the 200-DMA and lifted the pair toward 138.00

  • Risk aversion amidst further Federal Reserve tightening spurred the rally on the USD/JPY.
  • USD/JPY Price Analysis: Range-bound, about to clear crucial DMAs.

The USD/JPY bounces off the 200-day Exponential Moving Average (EMA) and rises above the 137.00 mark on Thursday, courtesy of a risk-off impulse spurred by the US Federal Reserve (Fed) rate hike. Investors bracing for further tightening, keep the US Dollar (USD) bid against the Japanese Yen (JPY). At the time of writing, the USD/JPY exchanges hands at 137.74 as the Asian session begins, 50 pips shy of the 20-day Exponential Moving Average (EMA) at 137.99.

USD/JPY Price Analysis: Technical outlook

The USD/JPY daily chart illustrates the pair range-bound, within the 133.60-138.00 range, during the last eleven days. At the bottom of the range lies the 200-day EMA at 135.15, and on the top is the 20-day EMA. Oscillators like the Relative Strength Index (RSI) in the bearish territory is almost flat, while the Rate of Change (RoC) portrays that buying pressure is almost non-existent, opening the door for a mean reversion.

For that scenario to play out, the USD/JPY must fail to clear the 138.00 mark. After that, the USD/JPY next support would be the 137.00 mark, which, once cleared, could expose the December 14 daily high of 135.99, ahead of the 200-day EMA at 135.16.

As an alternate scenario, the USD/JPY first resistance would be the 138.00 mark. A breach of the latter will expose essential supply zones, like the 100-day EMA at 139.70, ahead of the psychological 140.00 figure.

USD/JPY Key Technical Levels

 

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