USD/JPY analysis: breaking lower, headed towards 112.00

Valeria Bednarik FXStreet

USD/JPY Current price: 112.97

The USD/JPY pair fell to a fresh 2-week low of 112.96, undermined in the US afternoon by a decline in US yields, which remain a driving force for the safe-haven currency. Treasury yields have been stable for most of the week, but fell in the latest hour following an auction. The 10-year benchmark now stands at 2.33%, down from previous 2.34%, while the 30-year yield retreated to 2.99% from 3.01%. Comments from BOJ's Governor Kuroda confident stance on withdrawing stimulus in the future, is also yen supportive, as the Central Bank's leader said earlier today that he is "quite sure" that they can smoothly exit monetary stimulus when the time comes. Entering the Asian session barely holding around 113.00, the pair has an immediate support around 112.50, where in the 4 hours chart stands a bullish 100 SMA, followed by 112.00, the 38.2% retracement of the November/December rally. In the same chart, the RSI indicator aims higher within negative territory, but the RSI indicator anticipates some further declines, heading south around 40.

Support levels: 113.20 112.75 112.40

Resistance levels: 114.00 114.50 114.85

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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