The Pair has fallen from a two-week high.
After reaching a two-week high on Monday. The USDJPY pair sees some selling and currently trades slightly below the 133.00 round-figure level in the early North American session.
The USDJPY pair experiences some downward pressure as the US Dollar (USD) struggles to take advantage of its intraday gains. Due to the uncertainty around the Fed’s rate-hike plan. Despite the overall favorable risk tone. The downside appears to be limited, at least for the time being. Which tends to undercut the Japanese Yen, a classic safe haven currency (JPY).
USDJPY Technical Analysis
The 50% Fibonacci retracement level of the March decline. And the 100-day Simple Moving Average form a confluence hurdle that will likely result in the USDJPY pair being rejected (SMA). The cited region should Acting as a turning point at the moment. Which if passed will pave the way for a continuation of the recent move-up seen over the previous week or so.
However, oscillators on the daily chart haven’t yet shown a bullish view. So it would be wise to hold off on setting up for any more gains until a move through the noted barrier.
The USDJPY pair may then try to break through the 134.00 round-figure level. And build momentum towards challenging the 61.8% Fibo level resistance. Which is located between 134.75 and 134.80.
On the other hand, any further decline below the 132.80 region, or the 38.2% Fibo level, is likely to find solid support close to the 132.25 area before the 132.00 mark and the 23.6% Fibo level, near the 131.60-131.55 area.
The USDJPY pair may drop below the 131.00 level and into the next significant support zone at the 130.55–130.50 area if the latter is broken convincingly below it.
