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Title: USD/JPY Price Analysis: Plunges to near 133.00 on breaking 50-EMA, 130.00 eyed

July 29, 2022 12:43 AM ET

By: AnalysisWatch

The USD/JPY pair has broken out to the downside in the Asian trading session from the consolidation that had formed in a narrow range of 134.18-134.67. The breakout to the downside is extremely steep and has pulled the value below 133.23 in no time. The yen bulls don't seem to be losing steam anytime soon and will continue to pull the value higher.

On the daily scale, a movement of imbalance downwards from the stock distribution formed in a range of 135.57–137.96 has quickly pulled the asset down. The main price has fallen from the 50-period EMA (Exponential Moving Average) at 132.99, confirming that the short-term trend has become bearish.

The 100-period EMA at 130.33 is still advancing, maintaining the bullish long-term context for now.

Meanwhile, the Relative Strength Index (RSI) (14) has dipped below 40.00 for the first time in the last six months. The Momentum Oscillator points to further downside, shows no signs of divergence, and is currently oversold.

A decisive drop below Friday's low at 133.00 will drag the value towards the demand zone between 131.28 and 131.54, followed by the psychological support at 130.00.

On the other hand, the greenback bulls could defend the chances of a bearish trend reversal if the asset breaks above the July 22 high at 137.96, which would push it towards the July 21 high at 138.88. If the latter level is breached, the major will rise to its all-time high of 139.39.

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