USD/JPY analysis: overall bearish, 114.00 comes at sight
|USD/JPY Current price: 115.75
The USD/JPY pair maintains the bearish tone seen late last week, falling down to 115.19 this Tuesday, and unable to regain the 116.00 mark, in spite of marginally stronger dollar by the end of the day. Yields remained stable in the US, with the 10-year note benchmark at 2.38%, unchanged from its previous close. Japan will release its preliminary leading economic index and December's foreign reserves during the upcoming session, these lasts being more relevant given latest news coming from China. In the meantime, and from a technical point of view, the pair is biased lower in intraday charts, as in the 1 hour one, the price is developing below its 100 and 200 SMAs, with the shortest providing an immediate resistance at 116.25, and technical indicators having quickly resuming their declines after entering positive territory. In the 4 hours chart, the Momentum indicator heads south below its 100 level, the RSI consolidates around 43, while the price struggles around the 200 SMA, having pared early gains well below the 100 SMA. A break below 115.00 will expose the long term Fibonacci support at 114.00, and even though, the movement will remain corrective, as it will mean that the pair retraced half of its latest gains.
Support levels: 115.40 115.00 114.60
Resistance levels: 116.10 116.60 117.00
View Live Chart for the USD/JPY
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