USD/JPY analysis: yen to resume its advance below 111.40

USD/JPY Current price: 111.61
The Japanese yen retakes the upside against its American rival during the last session, following comments coming from North Korean foreign minister, Ri Yong Ho, who said that US President Donald Trump's comments over the weekend were clearly a declaration of war and therefore, they have every right to take countermeasures, including the right to shoot down strategic US bombers even if they are not in North Korean airspace. US equities, which were off to a soft start, fell further, whilst US Treasury yields trimmed most of last week's gains. The 10-year note benchmark is down to 2.22%, after closing last Friday at 2.26%. The pair fell down to 111.46 before bouncing modestly, holding into the red for the day, and close to trim all of the Fed-related gains triggered last week. The 4 hours chart indicates that the pair bounced from near a critical support, the 23.6% retracement of the 107.31/112.71 rally around 111.40, now the immediate support. The same chart shows that technical indicators gained downward momentum within bearish territory, but also that the price remains well above its 100 and 200 SMAs. In the 111.40 area, the pair also has its 200 DMA, reinforcing the strength of the level, and giving stronger implications to a bearish breakout of such level.

Support levels: 111.75 111.40 111.00
Resistance levels: 112.10 112.40 112.85
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.

















