USD/JPY: pressuring 112.00, bearish

Valeria Bednarik FXStreet

USD/JPY Current price: 112.02

The USD/JPY pair fell to 111.95, its lowest for this July, as the dollar plunged on headlines indicating that two more Republican senators said that they won't support the Obamacare repeal bill. That makes a total of four republicans against the reform, and means that the bill won't get support to get into the House, another setback for the current US administration. Yields are down ahead of the US opening, whilst European shares trade mixed, struggling to remain a float as risk sentiment got a turn to the worst. Technically, the USD/JPY pair seems poised to extend its slide as it finally broke below the 38.2% retracement of its latest bullish run and even completed a pullback to the level, around 112.30, before reaching fresh intraday lows. In the 4 hours chart, the price is also developing below its 100 SMA, while technical indicators consolidate near oversold territory, lacking directional strength but leaning the scale towards the downside. The 50% retracement of the same rally stands at 111.60, with a break below it probably resulting in a downward acceleration towards the 111.00 region.

Support levels: 111.95 111.60 111.20

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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