Title: USD/JPY Price Analysis: Bears cheer monthly support break below 135.50

July 28, 2022 02:25 AM ET

By: AnalysisWatch

The USD/JPY bears hold the reins around 135.30, cheering the downside break of an ascending trend line from June 23 ahead of Thursday's Asian session.

Thus, the yen pair also justifies the previous day's reversal from a two-week-old horizontal resistance around 137.40. Moreover, the bearish RSI (14), which is not oversold, continues to give hope to USD/JPY bears.

Nevertheless, the price is currently falling towards the 38.2% Fibonacci retracement of the May-July uptrend at 134.35.

Thereafter, the 50-DMA at 134.15 could pose a challenge to USD/JPY bears before moving towards the mid-June swing low at 131.50.

Alternatively, the support/resistance line, which was at 135.90 at the time of writing, could precede the 136.00 threshold to prevent a near-term USD/JPY rally.

Even if the pair rises above 136.00, a horizontal area encompassing several levels marked since July 11 and a downward resistance line from July 14 at 137.40 and 138.40 respectively will be tough nuts for the pair's buyers to crack before it takes control.

Overall, USD/JPY is on the way to 134.15 until the price stays below 138.4