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USD/JPY: Japanese Yen Gets Assistance From 143.40 Support

Published 08/28/2024, 03:27 AM
USD/JPY
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  • USD/JPY retains bearish bias
  • MACD and RSI try to gain some momentum
  • 23.6% Fibonacci acts as strong resistance

USD/JPY is continuing its descending movement, especially after the failed attempt to jump above the uptrend line and the 38.2% Fibonacci retracement level of the down leg from 161.94 to 141.60 at 149.50.

As the market remains beneath the 23.6% Fibonacci of 146.45 and the 20-day simple moving average (SMA), there is no notable sign for an upside retracement.

However, the technical oscillators indicate a weak bearish structure. The MACD is still in the negative territory but above its trigger line, while the RSI is sloping marginally up near the 30 level.USD/JPY-Daily Chart

More downside movements could find immediate support at the 143.40 level, which is ahead of the more than seven-month low of 141.60, before posting a lower low at 140.20, which was registered on December 24.

If the bulls take control, then the 23.6% Fibonacci of 146.45 and the 38.2% Fibonacci of 149.50 are the next obstacles. Even higher, a penetration of the 200-day SMA at 151.30 could be a signal for an upside correction.

In brief, USD/JPY retains the bearish structure that started after it topped at 161.94, but in the bigger picture, the pair is bullish, holding well above the 200-week SMA.

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