USD/JPY continues its downward trend for the second consecutive session, trading below the 141.30 level during the Asian hours on Thursday. Improved trade data from Japan in November has exerted pressure on the currency pair. However, less optimistic remarks from Bank of Japan Governor Kazuo Ueda may weigh on the Japanese Yen.
From a technical standpoint, the spot price indicates potential recovery below the 142.00 level and appears to have broken the two-day decline. This suggests that breaking below the 200-day Simple Moving Average (SMA) is crucial support for bearish traders. Furthermore, oscillators on the daily chart remain deeply in negative territory, indicating limited resistance for USD/JPY on the downside. Any subsequent upward movement may still be viewed as a selling opportunity and is likely to be capped around the 142.75 level (200-day SMA). This implies that further buying activity leading to a move beyond the 143.00 level could trigger short-covering actions, allowing the bullish camp to reclaim the 144.00 milestone.
On the flip side, weakness below the Asian session's lowest levels around the 141.90-141.85 region would reaffirm the short-term trend and make USD/JPY susceptible to retesting below the 141.00 level, or the multi-month lows touched last week. Subsequent declines could potentially pull the spot price towards the intermediate support at 140.45 on the way to the psychological level of 140.00.
From a technical standpoint, the spot price indicates potential recovery below the 142.00 level and appears to have broken the two-day decline. This suggests that breaking below the 200-day Simple Moving Average (SMA) is crucial support for bearish traders. Furthermore, oscillators on the daily chart remain deeply in negative territory, indicating limited resistance for USD/JPY on the downside. Any subsequent upward movement may still be viewed as a selling opportunity and is likely to be capped around the 142.75 level (200-day SMA). This implies that further buying activity leading to a move beyond the 143.00 level could trigger short-covering actions, allowing the bullish camp to reclaim the 144.00 milestone.
On the flip side, weakness below the Asian session's lowest levels around the 141.90-141.85 region would reaffirm the short-term trend and make USD/JPY susceptible to retesting below the 141.00 level, or the multi-month lows touched last week. Subsequent declines could potentially pull the spot price towards the intermediate support at 140.45 on the way to the psychological level of 140.00.
