USD/JPY Price Analysis: Bears in charge as pair plummets below 155.00
- USD/JPY falls below 155.00 inside the Ichimoku Cloud.
- The pair shifted neutral, consolidating inside the ‘cloud.’
- Key support levels: 154.72 (50-DMA), 154.00, and 153.31 (bottom of Kumo).
- Key resistance at 154.93 (Tenkan-Sen) and 156.17 (top of Kumo).
The USD/JPY plummeted some 0.80% late in the North American session, as economic data from the United States fueled speculations that the US Federal Reserve could lower rates in September. The pair traded at 154.72 after hitting a daily high of 156.48.
USD/JPY Price Analysis: Technical outlook
The USD/JPY has shifted from a neutral upward bias to neutral as prices tumbled inside the Ichimoku Cloud (Kumo) while testing the 50-day moving averages (DMA). Further consolidation is seen if buyers fail to push the exchange rate above the top of the Kumo at around 156.10-15.
The USD/JPY could remain within the 153.30-156.00 range. A breach of the 50-DMA at 154.72 exposes the 154.00 mark. Once those two levels are cleared, the next stop would be the bottom of the Kumo at 153.31.
Conversely, if buyers reclaim the 155.00 figure, the next resistance level would be the Tenkan-Sen at 154.93. Further resistance lies overhead, like the 155.00 psychological level, followed by the top of the Kumo at 156.17.
USD/JPY Price Action – Daily Chart
