The US dollar fell against the Japanese yen on Friday. By the close of US trading, USD / JPY is trading at 113.72, losing 0.15%. I believe that support is now at around 113.51, Tuesday’s low, and resistance is likely at 114.56, high on Thursday.
USD/JPY dipped below 113.00 today, but reversed and started to retrace its losses. Now the pair is again below this level and indicators on the four hour time frame had lost directional strength. The price is developing below its moving averages and first resistance is provided by the flat 100-day SMA at 113.06.
As seen on the four hour time frame, the USD/JPY pair is struggling to preserve its early gains. The price is now looking for direction around the flat 100-day SMA and the bearish 20-day SMA. RSI and stochastic remain within negative territories, but both are directionless. There are no obvious signs for upcoming steeper recovery, as the pair will have to accelerate through 113.60 in order to enter into bullish ground, while a break below 112.75 would enlarge the risk toward the downside.
USD/JPY broke below the 100-day and 200-day SMAs, as seen on the four hour time frame and the last one is providing immediate resistance around 112.30 area, as bulls were unbale unable to advance beyond it. RSI and stochastic have corrected from extremely negative territories, but quickly resumed declines and still are developing in oversold territory, keeping the risk towards the downside.
Usd/Jpy is trading in a narrow range just above 112.00 level while the risk remains to the downside. The immediate support handle 111.80/90 seem strong, on the upside, resistance can be found around 112.50/60.
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