USDJPY Technical Analysis: USD/JPY Falls to Two-Week Low Amid Strong Japanese PMI

USDJPY fell to a two-week low

On Wednesday, USDJPY fell sharply. At one point, it reached 158.21, the lowest level since 20^th August.

Japan PMI (August) climbed

Japan Services PMI (August) rose from 52.3 to 52.5, and Japan Composite PMI (August) increased from 53.4 to 53.5, according to the data from the IHS Markit.

The USDX climbed and then fell

On Wednesday, the USDX climbed and then fell. It ended down 0.1% at 99.56.

The bearish market trend prevailed in the short term

The Chart of the Day

On the chart of the day, USDJPY fell sharply. 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 158.0. It will decline with potential support at 156.7 if it breaks below 158.0.

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 158.6. It will decline if it rebounds but is capped at 158.6.

Key resistance: 158.6,159.0

Key support: 158.0,156.7

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