USD/JPY Price Analysis: Dips as it faces resistance at the 200-DMA, post-US CPI

• The USD/JPY retraced after hitting a daily high of 134.00, though solid resistance pressured USD Bulls.
• USD/JPY Price Analysis: Downside expected as it remains below 133.77; otherwise, once reclaiming 134.00, 135.00 would be up for grabs.

The USD/JPY remains downward pressured, following a release of inflation figures in the United States (US) dipped, though core inflation stood unchanged for two straight months. At the time of typing, the USD/JPY is trading at 133.33, snapping four days of gains after hitting a high of 134.04.

USD/JPY Price Action

From a technical perspective, the USD/JPY is trapped within the 200 and 50-day EMAs at 133.70 and 133.09. the USD/JPY peaking on Tuesday at around 133.80 was difficult to surpass, as shown by Wednesday’s price action. Nonetheless, the USD/JPY needs a daily close below the 200-day EMA to cement the case for a neutral-to-downward biased, exerting selling pressure on the USD/JPY pair.

If USD/JPY achieves that scenario, the next support would be the 133.000 figure. A breach of the latter will expose the 20-day EMA at 132.70, followed by the 132.00 mark. On the other hand, a USD/JPY resumption above the 200-day EMA will exacerbate a recovery above the confluence of the 100-day EMA and the 134.00 figure. Once cleared, the USD/JPY could threaten January’s 6 high at 134.77, before reaching the 135.00 figure.

USD/JPY Daily Chart

USD/JPY Technical Levels