USD/JPY Forecast: Selling interest keeps capping rallies

Valeria Bednarik FXStreet

USD/JPY Current price: 111.16

View Live Chart for the USD/JPY

Selling interest keeps capping rallies. The USD/JPY pair consolidated uneventfully around the 111.00 level for most of this Thursday, with a spike up to 111.53 being quickly reverted. The dollar is losing ground after the release of mixed data, with Q4 GDP being revised higher, but unemployment figures disappointing. The upward potential in the pair remains limited by strong selling interest around 111.60, in where the pair bottomed multiple times over the past weeks, and the 1 hour chart shows that the price retreated back below its 200 SMA, whilst technical indicators turned lower and are currently breaking below their mid-lines, indicating that the short term risk remains towards the downside. In the 4 hours chart, the price continues developing below bearish 100 and 200 SMAs, whilst indicators turned modestly lower within positive territory, failing to provide clear directional signs.

Support levels: 111.05 110.70 110.25

Resistance levels: 111.60 112.00 112.45

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

1. R3 111.97
2. R2 111.65
3. R1 111.35
PP 111.03
1. S1 110.73
2. S2 110.41
3. S3 110.11

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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