• The USDJPY tumbled below the 100-day EMA and recorded a three-month-low of around 137.65.
• The USDJPY has been building a bottom around eh 137.60-140.80 area for the last five consecutive days.
• The Relative Strength Index exiting from oversold conditions suggests an upward correction likely.

The USDJPY consolidated below the 100-day Exponential Moving Average (EMA), after dropping from YTD highs reached in October at 151.94. Still, since then, the US Dollar (USD) depreciated almost 8% against the Japanese Yen (JPY) in nearly a month. At the time of writing, the USDJPY is trading at 140.15, above its opening price by 0.49%, after hitting a daily low of 138.87.

USDJPY Price Analysis: Technical outlook

During the week, the USDJPY remains trapped in a narrow 137.50-140.80 range so far, after diving towards a fresh three-month low at around 137.65, reached on November 15, it formed a hammer. Since then, the USDJPY recorded two successful days without reaching lower lows below 138.70 and climbed towards the 100-day Exponential Moving Average (EMA) at 140.89. However, unless USD buyers reclaim the latter, the major bias would remain neutral to downwards.

That said, the USDJPY's first support would be the November 16 daily low at 138.72. A breach of the latter will expose key support levels like the weekly low at 137.65. Once cleared, the next support would be a three-month-old upslope support trendline that passes around 137.48, immediately followed by the 200-day Exponential Moving Average (EMA).

On the other hand, the USDJPY's first resistance would be the 100-day EMA at 140.89. A break above will expose the November 11 daily high at 142.48, followed by the 50-day EMA at 145.13.

USDJPY Key Technical Levels