After reversing from a two-month-old downward resistance line, USD/JPY declines for the second day in a row, falling 0.35% intraday near 132.60 in the early hours of Friday.
The Yen pair does this while also explaining the previous day’s downward violation of a one-week-old ascending support line that is currently resistance near 133.90.
Nevertheless, the price is falling toward a zone of horizontal support with various levels indicated since April, roughly between 131.50 and 30.
The pair’s further drops past 131.30, however, seem to be constrained by the sluggish MACD signals.
The latest bottom around 130.55, which is also the lowest level in four months, will be in focus if the USD/JPY breaches the 131.30 support. In contrast, the near-term support-turned-resistance line, at about 133.90, protects the USD/short-term JPY’s rebound.
