USD/JPY Forecast: Ready to test critical 111.95 level

Valeria Bednarik FXStreet

USD/JPY Current price: 112.19

View Live Chart for the USD/JPY

Ready to test critical 111.95 level. The USD/JPY trades at fresh 2-week lows around 112.20, as less hawkish-than-expected FED minutes, and a possible delay in the tax reform´s implementation to August, cooled demand for USD-related assets. US Treasury yields and worldwide stocks are under selling pressure, fueling yen's advance. The bearish momentum is strong in the short term, given that in the 1 hour chart, the price is developing well below its moving averages, whilst technical indicators head sharply higher within oversold territory. In the 4 hours chart, the price has accelerated lower below its moving averages, whilst technical indicators also present strong downward slopes near oversold levels. The pair may pared losses and recover partially if upcoming US data beats expectations, but it will take a clear recovery above 112.50 to revert the ongoing bearish momentum, at least in the short term.

Support levels: 111.95 111.60 111.20

Resistance levels: 112.50 112.90 113.30

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

1. R3 114.61
2. R2 114.20
3. R1 113.91
PP 113.50
1. S1 113.20
2. S2 112.79
3. S3 112.50

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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