USD/JPY slips below its averages as 156.35 support is tested
USD/JPY closed at 156.82 on 23 October, down 0.8% over the week. The pair sits below both its 50-day moving average (157.52) and its 200-day moving average (158.55), trading 0.4% and 1.1% beneath them respectively. The close is not far from nearest support at 156.35, with price having drifted lower across the last two sessions.
The daily trend reads Down, with the close under a falling 50-day average, itself below the 200-day average. The most recent confirmed swing high was 158.94 on 14 October, and the most recent confirmed swing low was 157.53 on 15 October. On the weekly chart, the close sits below both the 10-week average (157.40) and the 40-week average (158.45). The 52-week range runs from 152.08 to 163.98.
RSI stands at 40, below the midpoint and closer to the 30 level some traders watch as oversold. The last five daily closes show a steady drift lower, from 158.50 on 19 October to 156.82 on 23 October, with a notable step down between 21 and 22 October. Average daily range (ATR 14) is 0.76, a useful gauge of how far price typically moves in a session.
A daily close back above the 50-day average at 157.52 would signal a shift away from the current downward structure and put resistance at 158.94 back in focus. A daily close below support at 156.35 would signal continuation lower, with 155.21 as the next reference level. A sustained move back above the 200-day average at 158.55 would be needed to challenge the broader Down trend reading.
The FOMC statement and rate decision on Wednesday 28 October at 18:00 GMT is a key event for the dollar side of this pair. The BoJ monetary policy statement and rate decision on Friday 30 October at 02:30 GMT is the key event for the yen side. Both carry the potential to move USD/JPY around current support and resistance levels.
- Daily prices: EODHD (USDJPY.FOREX); trend, levels and RSI computed by Praevis
- Events: Praevis economic calendar