USD/JPY found support at 50-SMA; Next Stop could be at 128 Level
USD/JPY Technical Analysis
The daily chart of the currency pair USD/JPY shows that 50-Day Simple Moving Average (SMA) line is holding it from further decline at the 132.389 level. After breaking below the ascending channel, the forex pair USD/JPY started its massive fall yesterday. There are more chances of further bearish pressure in the coming sessions.
The technical indicators are all backing this signal. The Moving Average Convergence & Divergence (MACD) histograms are fading and leaning towards the zero line. This suggests further price fall ahead. Meanwhile, the Relative Strength Index (RSI) below the mid-level is sloping towards the oversold zone, indicating continued bearish pressure in the coming sessions. Furthermore, the Stochastic Oscillator is also backing the signals with the %K line touching the oversold zone and the %D line following it with a negative slope.
Right now, the 132 level at 50-Day SMA is providing initial support to the currency pair USD/JPY. However, any break below this level would drag the prices towards the next support level at 130.546. Additionally, the USD/JPY prices are poised to fall towards the 128.406 level. Here, prices will see critical support, as this is the same level where descending channel began on March 2.
Overall, the technical analysis suggests a bearish trend continuation in the coming sessions.
Daily Technical Levels