The USDJPY pair is currently recovering from its lowest point in two weeks and breaking a three-day losing streak. The US Dollar is bouncing back from a yearly low as traders await the latest Federal Open Market Committee (FOMC) meeting minutes. Despite this bounce, the Yen pair is still trading below important Exponential Moving Averages (EMAs) and shows bearish signs from the MACD indicator, keeping sellers optimistic.
If the USDJPY continues to drop, it might soon test the 144.00 support level, which has held for about 12 days. A fall below 144.00 could push the pair towards the July low of around 141.70. However, the Yen pair will need to move past the 50% Fibonacci Extension near 141.30 before targeting 140.00 and the 61.8% Fibonacci Extension around 139.40-35.
On the upside, the 50 and 100 EMAs are likely to cap the USDJPY’s immediate gains, with resistance levels around 147.10 and 148.50. Beyond that, the pair might face resistance at the previous weekly high near 149.40 and the 150.00 level. If it breaks above 150.00, the final resistance points are at the 200-EMA level around 151.15 and the late July swing low near 151.95.
In summary, while the USDJPY is currently recovering, the bears remain in control as traders await key news.
