Analysis

USD/JPY Forecast: Downward pressure persists

USD/JPY Current price: 112.57

View Live Chart for the USD/JPY

Downward pressure persists. The USD/JPY pair continues consolidating below the 113.00, level, having extended its weekly decline down to 112.25 early Asia, on broad dollar's weakness. During the Asian session, BOJ's board member Iwata commented on rates differentials, saying the Japanese yen could weaken against the greenback on interest rate differentials, but that those are not the only factor determining FX levels. The short term picture for the pair is neutral-to-bearish according to the 1 hour chart, as technical indicators are flat around their mid-lines, but the 100 SMA has accelerated its slide well above the current level, offering a strong dynamic resistance in the case of a recovery at 113.10. In the 4 hours chart, the price remains far below horizontal moving averages, whilst technical indicators have turned higher within range, but still below their mid-lines, also favoring a new leg lower. At this point, a break below 112.00 is required to confirm a steeper decline, which will likely extend pass 111.60, in where the pair bottomed multiple times during the last two-months.

Support levels: 112.45 112.00 111.65

Resistance levels: 113.10 113.50 114.00

 

Interested in USD/JPY technicals? Check out the key levels

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.