USD/JPY PRICE ANALYSIS: TECHNICALS SUGGEST FURTHER DOWNSIDE SEEN
- USD/JPY trades below 157.00, near the Ichimoku Cloud’s narrowest top, signaling potential downside.
- Technical indicators show bearish momentum: Tenkan-Sen below Kijun-Sen, Chikou Span piercing below price action.
- Key support levels: 156.28 (July 22 low), 155.90/156.00 (Kumo bottom), 155.37 (July 18 low).
The USD/JPY registered losses of more than 0.20% on Monday, remaining near the top of the narrowest part of the Ichimoku Cloud (Kumo) as traders eye further downside. As Tuesday’s Asian session begins, the pair trades at 156.96, virtually unchanged.
USD/JPY Price Analysis: Technical outlook
From a technical perspective, the USD/JPY is neutral to downward biased as more bearish technical signals emerge. This, alongside releasing a deceleration of inflation, could weigh on the Greenback and push the spot price lower. Momentum suggests that sellers are in control, opening the door for further downside.
The crossing of the Tenkan-Sen below the Kijun-Sen and the Chikou Span piercing below price action are the leading signals that warned traders that the pair’s trend could change.
If USD/JPY drops below the July 22 low of 156.28, that would pave the way for further downside. The next support would be the bottom of the Kumo at around 155.90/156.00, followed by the July 18 test at 155.37. on additional weakness, the pair would aim toward the June 4 daily low of 154.55
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