USD/JPY analysis: still heading lower, 110.90 on the table

Valeria Bednarik FXStreet

USD/JPY Current price: 112.03

The USD/JPY pair fell down to 111.68, its lowest since June 30th, to end the day around 112.00. The soft tone of European equities and a slide in US Treasury yields backed the rally of the Asian currency, in the absence of local data, with the Japanese calendar empty until next Thursday, when the Bank of Japan will have an economic policy meeting and the country will release its trade balance figures. The US 10-year note benchmark fell down to 2.27%, while the 2-year note interest eased to 1.35%. Technically, the pair managed to bounce on an approach to the 50% retracement of its latest bullish run at 111.60, the immediate support, but technical readings support additional slides ahead, given that in the 4 hours chart, the pair settled well below its 100 SMA and barely above the 200 SMA, whilst technical indicators have bounced modestly from oversold readings, but remain within negative territory. A break below the mentioned Fibonacci support, the pair has scope to extend its slide towards 110.90, where the pair presents multiple intraday lows from last June.

Support levels: 111.60 111.20 110.90

Resistance levels: 112.30 112.70 113.10

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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