USD/JPY Price Analysis: Loss of upside momentum looks imminent

FXStreet · 24 Jun 2022 318 Views
  • Bearish negative divergence on the RSI (14) is indicating exhaustion in the upside move.
  • The greenback bulls have defended the 10-EMA at 134.69.
  • The 20-EMA is still scaling higher untouched and is favoring a bullish bias.

The USD/JPY pair is displaying wild moves after the release of Japan’s Inflation. The asset is facing barricades around the round-level resistance of 135.00. On a broader note, the major has witnessed a steep fall after failing to sustain above the critical hurdle of 136.00.

The formation of bearish negative divergence on a daily scale is hinting for exhaustion after a juggernaut rally. In a comparison of the asset price and the momentum oscillator, Relative Strength Index (RSI) (14), a loss of momentum is clearly visible. The asset made a higher high on Wednesday at while the RSI (14) recorded a lower high. It is worth noting that a negative divergence signal is not sufficient to claim a bearish reversal. The concept needs more confirmation from other filters.

The greenback bulls are still defending the 10-period Exponential Moving Average (EMA) at 134.69. The 20-period EMA at 133.40 has not attacked yet and is advancing higher, which favors a bullish bias.

A demand zone in a 131.33-131.58 range will remain a major hurdle for the yen bulls.

For a downside move, the yen bulls need to violate Thursday’s low at 134.27. The occurrence of the same will drag the asset towards June 9 low at 133.29, followed by the above-mentioned demand zone.

On the contrary, the greenback bulls will resume the upside move after overstepping Thursday’s high at 136.30. This will expose the asset to register fresh two-decade highs at 136.89, recorded in October 1998, followed by September 1998 highs at 139.91.

USD/JPY daily chart


Today last price 134.8
Today Daily Change -0.15
Today Daily Change % -0.11
Today daily open 134.95
Daily SMA20 132.78
Daily SMA50 130.34
Daily SMA100 124.5
Daily SMA200 119.09
Previous Daily High 136.3
Previous Daily Low 134.26
Previous Weekly High 135.6
Previous Weekly Low 131.5
Previous Monthly High 131.35
Previous Monthly Low 126.36
Daily Fibonacci 38.2% 135.04
Daily Fibonacci 61.8% 135.52
Daily Pivot Point S1 134.04
Daily Pivot Point S2 133.14
Daily Pivot Point S3 132
Daily Pivot Point R1 136.08
Daily Pivot Point R2 137.21
Daily Pivot Point R3 138.12

Affected Trading Instrument

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