USD/JPY Current price: 120.75
Capped by critical Fibonacci resistance. Stocks fell in Asia, with the Nikkei 225 giving back some of the wild advance posted on Wednesday, and weighing on the Japanese yen. The USD/JPY pair spiked to a daily high of 121.33, as lawmakers comments added to equities volatilities. Japan's LPD Yamamoto, who has previously advised PM Abe, called for an extension of quantitative easing in the next October BOJ meeting. Also, Bank of Japan Governor Haruhiko Kuroda, noticed that whilst the economic recovery has been irregular, although conditions are given to reach the 2% inflation target. US tepid data however, is sending the pair back south, having been unable to extend beyond a key Fibonacci resistance, the 61.8% retracement of the latest weekly decline around the mentioned daily high. The 1 hour chart shows that the technical indicators have turned sharply lower from overbought levels, whilst the 100 SMA is slowly advancing far below the current price. In the 4 hours chart, the technical indicators also point for a continued decline in the short term, with a break below 120.35, the 50% retracement of the same decline, favoring a continued slide towards 119.60.View Live Chart for the USD/JPYSupport levels: 120.35 120.00 119.60
Resistance levels: 120.95 121.35 121.80
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