The Price of USD/JPY Will Likely Drop Below 132.00, Projecting Selling Opportunity

Key Take-Aways

  • In the 4-hours chart, the USD/JPY broke over a significant negative trend line with resistance close to 131.20.
  • Also accelerating above the 1.0850 resistance level is the EUR/USD
  • GBP/USD surged and traded above 1.2340 to reach a new monthly high.

Technical Analysis of USD/JPY

From the 129.65 zone, the USD/JPY began a respectable comeback wave against the Japanese Yen. To enter a bullish zone, USD/JPY traded above the 130.50 and 131.20 levels.

On the 4-hour chart, the pair broke over a significant bearish trend line with resistance located close to 131.20. The pair even traded close to the 100 simple moving average and tested the resistance at 132.80.

The 133.20 level serves as the first significant resistance. The 200 simple moving average and the 133.50 zone are the next major resistance levels. It is very close to the 50% Fib retracement level of the decline from the swing high of 137.91 to the low of 129.63.

The pair may go toward the 134.50 region if there is a clear move above the 133.50 resistance. Any additional advances might push the pair closer to 135.00.

On the downside, a strong support area is located close to 131.80. The 130.50 support may be approached if the next significant support, near the 131.20 level, is broken.

Economic News To Trade Today

  • The ECB president Christian Lagarde will Speak by 4:00PM
  • The Canadian GDP release(m/m): forecast 0.4% versus -0.1%
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.