USD/JPY Price Analysis: Testing critical daily support line at 109.25
- USD/JPY falls for the second straight day after the bear cross on 1D.
- Bears testing bullish commitments at this critical daily support line.
- The spot awaits confirmation for additional downside.
USD/JPY is pressuring the intraday lows near 109.15, looking to extend Monday’s decline amid growing coronavirus concerns-led increased demand for the traditional safe-haven yen.
A broadly subdued US dollar is doing little to help the spot, as the covid situation in Japan is becoming more severe. Meanwhile, the government is not considering compiling an extra budget as yet.
The near-term technical outlook for USD/JPY appears bearish, as the spot awaits a daily closing below the two-month-old ascending trendline support at 109.25 to unleash additional downside.
Immediate support is seen at the July lows of 109.05, below which the May 25 low of 108.55 will be on the sellers’ radars.
The 14-day Relative Strength Index (RSI) is pointing south below the midline, supporting the potential move lower.
The bear cross, represented by the 21-Daily Moving Average (DMA) breaking through the 50-DMA from above, has added offered extra zest to the bears.
USD/JPY daily chart
Alternatively, only acceptance above the horizontal 100-DMA support turned resistance at 109.60 could negate the bearish trend in the near term.
Further up, the downward-pointing 21-DMA at 110.00 will be the level to beat for the bulls.
USD/JPY additional levels to watch