USD/JPY: consolidating below 112.00, bearish
|USD/JPY Current price: 111.23
The USD/JPY pair remains in consolidative mode a few pips above the 111.00 figure, trapped between improved market sentiment and dollar's persistent weakness. Stocks trade marginally higher in Asia and Europe, anticipating a positive opening for Wall Street, while yields are ticking higher, but still close to yearly lows. With the pair below 112.00, the risk remains towards the downside in the wider view, and chances of a decline towards 109.90 remain high, although not for this Friday, with little in the macroeconomic front, and market's trading quietly. Short term, the 4 hours chart shows that the price is stuck around a horizontal 200 SMA, whilst the 100 SMA also lost upward strength, but stands far above the current level, near 113.00. In the same chart, technical indicators have corrected the extreme oversold readings reached on Thursday, but lost upward strength within negative territory, and the RSI already turned south around 39, anticipating some further declines for today, particularly on a break below 111.00.
Support levels: 110.90 110.55 110.20
Resistance levels: 111.60 112.00 112.45
View Live Chart for the USD/JPY
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