USD/JPY Forecast: Downward potential increases

USD/JPY Current price: 110.59

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USDJPY

Downward potential increases. The Japanese yen appreciated further during the past Asian session as local share markets plummeted, fueling demand for safe-haven assets. The USD/JPY fell down to 110.25, a level not seen since October 2014, and the following bounce was unable to reach the 111.00 figure, despite the BOJ offered its usual jawboning: chief cabinet secretary Suga said that authorities are watching FX movements with a "sense of urgency." The pair has corrected extreme oversold readings, but maintains a strong bearish tone, both short and long term, indicating a strong possibility of a break below 110.00, which may fuel the decline, despite the BOJ. The 1 hour chart shows that the price is well below its 100 and 200 SMAs, while the technical indicators have turned lower within bearish territory after correcting extreme oversold readings. In the 4 hours chart, the technical indicators have recovered partially within oversold territory, but with the price around its lows and far below its moving averages, the risk remains towards the downside.

Support levels: 110.25 109.90 109.50

Resistance levels: 110.70 111.20 111.60


 

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