USD/JPY keeps testing critical support around 114.75 amid risk aversion

Yen rises amid risk aversion on the back of geopolitical tensions.
USD/JPY trades with a bearish bias while under 115.10.

Matías Salord FXStreet

The USD/JPY is holding onto daily losses and trading under 115.00 during Monday’s American session. The pair bottomed at 114.79, slightly above last week's low. The dollar is mixed while the yen is mostly higher across the board.

Yen benefits as Putin’s comments hit markets

The Japanese yen is among the top performers on Monday, rising at a modest pace, supported by risk aversion. Equity prices are falling in Europe with the CAC 40 is down 1.48% and the DAX 1.36%. US markets are closed due to Presidents Day. Dow Jones futures are falling 0.68%. The DXY is falling 0.15%, off lows. It remains in the 96.15/95.70 range.

Market sentiment deteriorated amid rising tensions regarding the Ukrainian border. Russian President Vladimir Putin mentioned that Russia should recognize the independence of separatist regions of Ukraine if no progress is made.

USD/JPY testing key short-term support

The USD/JPY is moving with a bearish bias in the very short term, testing the 114.75/80 support area. A break lower should open the way to more losses, targeting 114.45 initially.

A recovery above the 20-SMA (Simple Moving Average) on the four-hour chart, currently at 115.10, would change the bias from negative to neutral.

Technical levels

USD/JPY

Overview
Today last price	114.87
Today Daily Change	-0.22
Today Daily Change %	-0.19
Today daily open	115.09

Trends
Daily SMA20	115.08
Daily SMA50	114.79
Daily SMA100	114.2
Daily SMA200	112.1

Levels
Previous Daily High	115.3
Previous Daily Low	114.79
Previous Weekly High	115.88
Previous Weekly Low	114.79
Previous Monthly High	116.35
Previous Monthly Low	113.47
Daily Fibonacci 38.2%	115.1
Daily Fibonacci 61.8%	114.98
Daily Pivot Point S1	114.82
Daily Pivot Point S2	114.55
Daily Pivot Point S3	114.31
Daily Pivot Point R1	115.33
Daily Pivot Point R2	115.57
Daily Pivot Point R3	115.83

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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