USD/JPY analysis: fresh lows, more to come

Valeria Bednarik FXStreet

USD/JPY Current price: 115.06

The USD/JPY pair plummeted to 114.23, its lowest since early November, after the technical breakout of the 115.00 level, fueled by upcoming US President Donald Trump´s press conference. The JPY traded advanced up to 116.86 early US session, helped by the positive tone of stocks after the opening, but the dominant bearish momentum resumed after Trump´s words stirred up uncertainty. Adding to JPY's strength were positive news coming from the country overnight, as the November Coincident index surged to its highest in almost three years, printing 115.1 from previous 113.5, a sign of consumption improvement. The pair bounced from the mentioned low, but is having a hard time around the 115.00 level ahead of the Asian opening, and looking increasingly bearish according to technical readings, as in the 4 hours chart, the price has broken below its 200 SMA for the first time in two months, while technical indicators head strongly lower at fresh weekly lows, supporting a continued decline for the upcoming Asian session.

Support levels: 114.60 114.20 113.70

Resistance levels: 116.10 116.60 117.00

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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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