VOT Research Desk
Early on Wednesday morning in Europe, USD/JPY oscillates around 135.50 as it tries to defend the bounce off the 200-DMA.
It indicates that the USD/JPY pair will soon begin to fall below the 200-DMA level near 135.35. In such situation, the market will focus on a rising support line from early August, located near 133.90.
The August month’s low, which is located near 130.40, could be threatened if the Yen pair breaches the crucial support level at 133.90.
Alternatively, if the 138.00 barrier is cleared to the upside, USD/JPY bulls may decide to target the late November swing high of 142.25.
The 140.00 level may serve as an interim halt throughout the run-up.
Overall, the USD/JPY is likely to continue to fall, but the downside seems to be constrained.
