Free Trial

Bearish Break Confirms as BoJ, CPI Weigh

USDJPY TECHS
  • RES 4: 137.48 High Dec 20
  • RES 3: 136.60 200-dma
  • RES 2: 134.77/81 High Jan 6 / 23.6% Oct - Jan Downleg
  • RES 1: 133.33 20-day EMA
  • PRICE: 129.63 @ 17:13 GMT Jan 12
  • SUP 1: 129.50 Low Jan 12
  • SUP 2: 129.09 2.0% 10-dma envelope
  • SUP 3: 128.44 1.236 proj of the Oct 31 - Nov 15 - 21 price swing
  • SUP 4: 127.53 Low May 31

USDJPY confirmed the resumption of the bearish break Thursday, with hawkish BoJ speculation compounded by the US CPI report. Prices have traded through the bear trigger at 129.52 on an intraday basis and markets will be watching for a close below to confirm a possible head and shoulders pattern drawn from early June 2022. Additionally, moving average patterns could add further weight, with the 50- and 200-dmas on the cusp of forming a bearish death cross. Support seen scant until 128.44, the 1.236 proj of the Oct 31 - Nov 15 - 21 price swing.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.