Technical Analysis – USDJPY dives after hitting 137.90
May 4, 2023 1:27 pm
USDJPY lost more than 2% of its ground after the pullback from the 137.90 resistance level, which is a significant level for traders. The pair posted a double top and is falling back near the short-term simple moving averages (SMAs). The RSI is pointing down near the 50 level, while the stochastic turned lower from the overbought region, indicating more losses.
The 50-day SMA and the 23.6% Fibonacci retracement level of the downward move from 151.90 to 127.25 at 132.95 is the next support level to keep in mind. Marginally lower, the rising trend line near 131.85 may act as a turning point for traders.
In the positive scenario, the pair could meet the 38.2% Fibonacci of 136.66 and the 200-day SMA at 137.00 ahead of the crucial 137.90 level. Overcoming these obstacles could switch the outlook to strongly positive, turning the focus to the 50.0% Fibonacci of 139.60.
To sum up, USDJPY failed once again to improve its bullish structure and any moves below the uptrend line could switch the outlook to neutral.
USDJPY lost more than 2% of its ground after the pullback from the 137.90 resistance level, which is a significant level for traders. The pair posted a double top and is falling back near the short-term simple moving averages (SMAs). The RSI is pointing down near the 50 level, while the stochastic turned lower from the overbought region, indicating more losses.
The 50-day SMA and the 23.6% Fibonacci retracement level of the downward move from 151.90 to 127.25 at 132.95 is the next support level to keep in mind. Marginally lower, the rising trend line near 131.85 may act as a turning point for traders.
In the positive scenario, the pair could meet the 38.2% Fibonacci of 136.66 and the 200-day SMA at 137.00 ahead of the crucial 137.90 level. Overcoming these obstacles could switch the outlook to strongly positive, turning the focus to the 50.0% Fibonacci of 139.60.
To sum up, USDJPY failed once again to improve its bullish structure and any moves below the uptrend line could switch the outlook to neutral.
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