USD/JPY Price Analysis: Plummets Below Ichimoku-Cloud, Eyes Further Downside

Yen, Money, Wealth, Japanese Yen

Image Source: Pixabay

  • USD/JPY drops below Ichimoku Cloud, first since January 15, hinting at possible extended downtrend.
  • Bearish RSI suggests further falls; supports at 155.00, 154.55, 151.86.
  • Resistance at 156.33; breach may push to 157.00, potentially reversing trend.

The USD/JPY plummets over 0.85% and drops below the Ichimoku Cloud (Kumo) for the first time since January 15. This is an important milestone yet pending to be confirmed by a daily close below 155.90. At the time of writing, the pair trades at 155.65 after hitting a daily high of 157.10.  


USD/JPY Price Analysis: Technical outlook
 

The USD/JPY is set to extend its losses if it achieves a daily close below the Kumo. This would be the fifth technical signal using Ichimoku to confirm the downtrend, which could pave the way for a deeper pullback.

Momentum favors sellers as depicted by the Relative Strength Index (RSI) aiming lower beneath the 50-neutral line.

Therefore, the USD/JPY path of least resistance is tilted to the downside. the first support would be the 155.00 figure. A breach of the latter will expose the June 4 low of 154.55, followed by the May 3 bottom at 151.86. Further losses are seen under that level, like the March 8 low at 146.48.

On the other hand, if buyers lift the exchange rate past the top of the Kumo at 156.33, that can open the door for a leg-up. The next resistance would be 157.00.


USD/JPY Price Action – Daily Chart
 


More By This Author:

Gold Price Falls Below Key Support As US Yields Climb
Silver Price Analysis: XAG/USD Plummeted More Than 2% And Dropped Below $29.50
Gold Price Stumbles Beneath $2,400 Drops To Five-Day Low

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with