Is It Time to Sell USDJPY on Rebounds? Two-Month Low, Coordinated Intervention, and Death Cross Signals Point to More Downside

USDJPY fell to a two-month low

Last Friday, USDJPY decreased by more than 1%. At one point, it hit a two-month low of 157.54.

The US and Japan carried out joint Forex intervention

The US and Japan coordinated to intervene in the Forex market, Japan’s Finance Ministry officially confirmed Monday morning, marking the first time since 2011 that the two countries stepped in together to move the currency market. 

The USDX decreased for the 4^th straight trading day

Last Friday, the USDX fell for four consecutive trading days. It ended down 0.2% at 99.7.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USDJPY continued closing in negative territory. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that USDJPY will fall further. Investors should focus on whether USDJPY will break through the support at 155.0. It will decline with potential support at 154.0 if it breaks below 155.0.

4-hour chart

On the 4-hour chart, USDJPY was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether USDJPY will break through the resistance at 157.0. It will fall if it rebounds but is capped at 157.0.

Key resistance: 157.0,158.0

Key support: 155.0,154.0

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as USDJPY rebounds during the day.