USD/JPY Forecast: Downward pressure persists

Valeria Bednarik FXStreet

USD/JPY Current price: 112.57

View Live Chart for the USD/JPY

Downward pressure persists. The USD/JPY pair continues consolidating below the 113.00, level, having extended its weekly decline down to 112.25 early Asia, on broad dollar's weakness. During the Asian session, BOJ's board member Iwata commented on rates differentials, saying the Japanese yen could weaken against the greenback on interest rate differentials, but that those are not the only factor determining FX levels. The short term picture for the pair is neutral-to-bearish according to the 1 hour chart, as technical indicators are flat around their mid-lines, but the 100 SMA has accelerated its slide well above the current level, offering a strong dynamic resistance in the case of a recovery at 113.10. In the 4 hours chart, the price remains far below horizontal moving averages, whilst technical indicators have turned higher within range, but still below their mid-lines, also favoring a new leg lower. At this point, a break below 112.00 is required to confirm a steeper decline, which will likely extend pass 111.60, in where the pair bottomed multiple times during the last two-months.

Support levels: 112.45 112.00 111.65

Resistance levels: 113.10 113.50 114.00

Interested in USD/JPY technicals? Check out the key levels

1. R3 113.03
2. R2 112.91
3. R1 112.80
PP 112.69
1. S1 112.58
2. S2 112.46
3. S3 112.35

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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