FX.co ★ USD/JPY targeting 138.00 psychological level

The USD/JPY pair is trading in the red at 139.31 at the time of writing and it seems determined to approach and reach new lows. You knew from my previous analysis that the currency pair signaled exhausted buyers and announced a new leg down.

The Japanese Yen dominates the currency market today only because the Japanese Yen Futures edges higher. The JPY ignored the Japanese Retail Sales, Prelim Industrial Production, Housing Starts, and Consumer Confidence data. Also, the greenback lost significant ground versus the JPY even if the CB Consumer Confidence came in better than expected yesterday.

Today, the JOLTS Job Openings and Chicago PMI are expected to come in worse compared to the previous reporting period. Worse than expected US figures should weaken the greenback.

USD/JPY Critical Support Violated!

Technically, the USD/JPY pair pressured the weekly pivot point of 139.60 signaling strong downside pressure. Now, it has dropped and closed below this downside obstacle and under the former low of 139.49.

The current breakdown may announce more declines. I told you yesterday that dropping and closing below 139.49 opens the door for more declines.

USD/JPY Prediction!

The bearish closure below 139.49 was seen as a selling opportunity as the sideways movement above the weekly pivot point of 139.60 represented a distribution before extending its drop. The weekly S1 (138.49) and the median line (ml) are seen as potential targets.