USD/JPY Price Analysis: Turned bearish, as death-cross surfaces, tumbles below 130.00
25.01.2023, 16:22

USD/JPY Price Analysis: Turned bearish, as death-cross surfaces, tumbles below 130.00

  • USD/JPY remained pressured as the 50-DMA crossed beneath the 200-DMA.
  • Bears stepped in and reclaimed 130.00, as they eye 129.00.

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.

USD/JPY Price Analysis: Technical outlook

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.

USD/JPY Key Technical Levels

 

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