USD/JPY analysis: further slides expose 109.90

Valeria Bednarik FXStreet

USD/JPY Current price: 110.96

The USD/JPY pair shed whopping 200 pips this Wednesday, with the selling spiral accelerating early US session amid US political woes denting market's sentiment. Speculative interest rushed into safe-havens and away from the greenback on escalating concerns surrounding US President Trump's continuity, who is close to face an impeachment after new headlines saying that he pressed former FBI Director Comey to end an investigation on Michael Flynn, who was fired last February after it became known that he lied to Vice President Pence, on speaking with Russian Ambassador Kislyak about sanctions on Russia prior to Trump’s inauguration. The unstoppable decline in the pair persists into the Asian opening, despite extreme oversold conditions clear in intraday charts. Japan will release its Q1 preliminary GDP figures during the upcoming Asian session, but seems more likely that the pair will continue responding to risk sentiment. Technically, the 4 hours chart shows that the price has broken below its 100 and 200 SMAs, while technical indicators have barely decelerated within extreme oversold territory, with the RSI heading south around 20. The pair is at its lowest since late April, with an immediate support at 110.86, April's 26th low, with a break below it exposing 109.90, the 50% retracement of the November/December rally.

Support levels: 110.85 110.40 109.90

Resistance levels: 111.25 111.60 112.00

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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