USD/JPY analysis: bearish pressure eases, but far from bullish

USD/JPY Current price: 111.53

The USD/JPY pair bounced back after printing a 3-week low of 110.23, ending the day in positive territory around 111.50. The pair fell at the beginning of the day as risk aversion persisted during the past Asian session, with local shares plummeting following the lead of their overseas counterparts. The pair changed course early US session, following better-than-expected US data,  with improvements in weekly unemployment  claims and the Philly manufacturing index. A bounce in US socks and yields also backed the recovery, with the 10-year note benchmark up to 2.24% intraday. Heading into the Asian opening, the pair maintains the negative tone, given that the price remains below the key Fibonacci resistance at 112.00, and that technical indicators have lost their upward strength well below their mid-lines, after barely correcting extreme oversold readings.  Above the mentioned 112.00 level, the bearish pressure may ease and favor additional gains towards the 113.00 region, whilst below 111.20, the risk will turn back towards the downside.

Support levels: 111.20 110.85 110.40

Resistance levels: 112.00 112.45 112.90

View Live Chart for the USD/JPY

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