The major finds immediate resistance at 111.40/50 (10-DMA/ psychological levels). A break above the last, the major could test 111.91 (classic R2/ Fib R3) and 112.79 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 110.98/84 (5-DMA/ daily pivot) next at 110.50/46 (classic S1) and below that at 110.18/00 (Fib S2/ zero figure).
The USDJPY was indecisive yesterday. The bias is neutral in nearest term. The “hammer” bullish reversal scenario remains valid and any sustained movement back above 111.30 could create a nice bullish run testing 112.00 – 113.00 region or higher. On the downside, key support remains at 110.10. A clear break below that area would cancel the “hammer” bullish reversal scenario.
The US dollar recorded a modest decline against the yen on Wednesday. The pair lost only 10 pips at a closing price of 111.03. The graphics continue to evolve under moving averages, while the index of relative strength remained on neutral territory. Keeping the current levels will contribute to positive attitudes.
USD traded mostly sideways after touching a high of 111.31 (target indicated at 111.50 was not met). The undertone still seems positive and another attempt to move towards 111.50 is expected. That said, a sustained break above this level seems unlikely for now (next resistance at 111.85). Support is at 110.75 but the stronger level is closer to 110.55.While USD closed largely unchanged yesterday, the recent downward pressure has eased further. However, only a daily closing above 111.50 would indicate that a short-term low is in place (and the start of a sustained recovery to 112.30). This appears to be a likely scenario unless USD was to drop back below 110.55 within these few days.
Dollar/yen had a bullish momentum yesterday, topped at 111.94 and hit 112.19 earlier this morning. The bias remains for up to test 112.85 as part of the bullish scenario hammer formation. Immediate support is near 111.30. A clear break below could bring price to neutral trade zone.
To the downside, support levels might be located at 111.30 (Mar 29 high), 110.90 (Mar 30 low) and 110.60 (Mar 23 & 24 low). On the upside, resistance might be seen at 111.85 (20-hour moving average), 112.20 (daily high) and 112.45 (Mar 20 low).
The US dollar was down against the Japanese yen on Friday. By the close of US trading, USD/JPY is trading at 111.40, losing 0.47%. I believe that support is now at around 110.09, Monday's low, and resistance is likely to come in at 112.20, the high of today's trading.
The USDJPY was indecisive last week. The “hammer” bullish reversal signal remains valid although we haven’t seen a convincing and strong/consistent movement above 111.30 key level area so far. The bias is neutral in nearest term. Immediate support is seen around 111.00. A clear break below that area could trigger further bearish pressure testing 110.70/50 area but key support remains at 110.10. Immediate resistance is seen around 111.60. A clear break above that area could trigger further bullish pressure testing 112.00 or higher.
The USDJPY had a bearish momentum yesterday bottomed at 110.85 and hit 110.55 earlier today in Asian session. The bias is bearish in nearest term testing 110.10 key support. A clear break and daily close below that area would expose 108.50 region this week and establish a longer term bearish trend with 111.30 – 112.00 as key resistance. Immediate resistance is seen around 111.30. A clear break and daily close back above that area would keep the “hammer” bullish reversal scenario remains alive and kicking testing 112.00 or higher
The dollar registered a volatile session against the yen on Tuesday. Although the trend varies widely, eventually opening price was close to that of closing, respectively, 110.89 and 110.73. In the early hours of the trade the trend was bearish in nature and so the pair hit bottom at 110.26, but later the dollar offset losses. If the negative momentum of the last two days continued, USD/JPY will test the support at 109.79.
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