USD/JPY analysis: breaking lower, more slides ahead
|USD/JPY Current price: 111.75
The USD/JPY pair broke below the 112.00 level late US session, with the Japanese currency benefiting from market's turmoil. Uncertainty surrounding the US future, alongside with increasing political woes across Europe, has sent investors into safe haven assets, with the JPY and gold benefiting by the most daily basis. Adding to the bearish case of the pair were US Treasury yields that edged sharply lower at the beginning of the week, with the 10-year benchmark down to 2.42% from 2.49% last Friday, and the 30-year yield falling from 3.11% to 3.06%. Japan will release December preliminary coincident and economic indexes during the upcoming Asian session, expected to have improved from November's readings. Trading below the key 112.00 level, the 38.2% retracement of the latest bullish run, the 4 hours chart shows that the 100 SMA has accelerated its slide above the current level, whilst the Momentum indicator has been rejected from its mid-line on multiple attempts to regain the level, as the RSI extends its slide around 36, supporting further slides ahead, moreover on a break below 111.60, the 100 DMA.
Support levels: 111.60 111.25 110.80
Resistance levels: 112.00 112.45 112.80
View Live Chart for the USD/JPY
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