August 24, 2022 01:07 AM ET
By: AnalysisWatch
The USD/JPY is showing a two-day bearish trend after refreshing the monthly high and refreshing the daily low around 136.35 ahead of Wednesday's European session.
In doing so, the yen pair is following the pullback in the RSI (14) and bearish signals in the MACD to keep intraday sellers' hopes alive.
However, an upward sloping support line from August 11 near 136.15 limits the pair's immediate downside.
Secondly, the 61.8% Fibonacci retracement level of the July-August southern descent is near the 136.00 threshold.
It should be noted, however, that a convergence of the 200-SMA and a horizontal zone comprising several marked levels since July 22, around 135.60-70, seems to be the notable challenge for USD/JPY bears.
Meanwhile, recovery moves could first target the daily high around the 137.00 round figure before challenging the monthly high marked the previous day at 137.65.
If USD/JPY bulls hold the reins beyond 137.65, the late July high near 138.90 and the previous monthly high near 139.40 could prompt buyers to target the psychological 140.00 level.