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USD/JPY Continues to Slide

January 14, 2022

  • USD/JPY started a fresh decline after testing resistance near 116.36.
  • Bullish trend line broken with support near 115.60.

The US Dollar, Japanese Yen pair tested resistance near 116.40 before turning bearish. USD/JPY declined rapidly, breaking multiple support levels.

USD/JPY 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the pair broke below the 115.50 support level, which is also close to a major bullish trend line near 115.60. The pair also settled below the 115.20 level and the 100-MA (red). There was a break below the 50% Fibonacci retracement level of the upward move from the swing low of 113.13 to the swing high of 116.34. The quote even broke below 114.50 and the 200-MA (blue).

For the pair to continue bearish, the quote will first need to test support near the 113.85 level. This is also close to the 76.4% Fibonacci retracement level (of the 113.13 low to the 116.34 high). There is further support near the 113.50 level. A break below here could see the pair drop down as far as 113.00.

In contrast, if the pair turns bullish, the quote will first need to test resistance near 114.50. The next major resistance is near the 115.00 level, above which the pair could climb back up towards 115.80.

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