USD/JPY: bearish leg towards 110.00 becoming more likely

Valeria Bednarik FXStreet

USD/JPY Current price: 111.41

The Japanese yen extended its advance against its American rival during the London morning, with the pair trading as low as 111.40 and holding nearby ahead of Wall Street's opening, backed by a strong decline in European indexes to fresh weekly lows. At the moment, US Treasury yields remain flat near their recent lows, giving no directional hints to the JPY. With an empty US calendar, the pair will likely continue moving on sentiment. In the meantime, the technical picture keeps favoring the downside, as the price settled below the 50% retracement of its latest weekly advance, now an immediate resistance at 111.60. In the 4 hours chart, the price is also below its 100 and 200 SMAs, while technical indicators hold within bearish territory, but lacking directional strength. The pair has a strong support around 110.90,the 61.8% retracement of the same rally and where it bottomed multiple times late June, with a break below it exposing the 110.00 threshold.

Support levels: 111.60 111.20 110.90

Resistance levels: 112.30 112.80 113.25

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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