USD/JPY analysis: Drops due to data
|USD/JPY
At mid-day on Wednesday, the USD/JPY currency exchange rate dropped sharply due to the release of the US Producer Price Index data. During its decline, the rate plummeted below all close by technical support levels.
In theory, the rate could decline as low as the previous July low level near 109.55. However, on its way down the pair is most likely going to encounter some support in the 110.00 exchange rate level.
On the other hand, a potential recovery would find resistance in the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 110.20/110.50 range.
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