USD/JPY dives to 200-SMA after sharp drop

USD/JPY slides to 158.00. A close below 200-EMA targets more downside. Risk: A bounce above 159.20 invites fresh buying.
XM Group | 17 days ago

Overview: USD/JPY slid to 158.00 following Wednesday's US Treasury bond intervention but held firmly above its 200-day EMA. This indicates that the bears need stronger selling pressure to worsen the short-term outlook. Still, the rejection at the 20-day EMA and the bearish crossover between the 20- and 50-day EMAs favor continued caution.

Momentum: The RSI and stochastic oscillator remain anchored in bearish territory, while the negative MACD keeps the odds low for an immediate bullish reversal.

Bearish Scenario: An extension below the flattening 200-day SMA near 157.90 could expose the lower boundary of the ascending channel around 157.00, with further downside targeting the 155.00 floor.

Risk: A close above the 159.20 barrier and the 20-day EMA could revive buying appetite.

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