The US dollar was down against the Japanese yen on Friday. By the close of US trading, USD / JPY is trading at 111.47, losing 0.88%. I believe that support is now at the level of 111.39, the low of Friday's trading, and resistance is likely to come in level 113.17 - Thursday's high.
The USDJPY attempted to push lower yesterday bottomed at 110.75 but closed higher at 111.33, printed a bullish pin bar on daily chart as you can see on my daily chart below. The bias is neutral in nearest term. Immediate resistance is seen around 111.60 area. A clear break above that area could trigger further bullish pressure testing 112.00 area and give the bullish scenario another chance. Immediate support is seen around 110.75. A clear break and daily close below that area would invalidate the bullish pin bar scenario and resume the bearish run testing 110.00 area or lower.
Currently the pair is consolidating aorun 61.8% Fibonacci retracement od its latest bullish run and according to technical indicators on h4 the chances for steeper advance are limited. The upside is still capped by 111.45 where the 100-day SMA is developing while the donwside remains supported by the 110.80 – 110.70 zone.
The USDJPY had another indecisive movement yesterday but slipped below the low of the mother bar (110.75) as you can see on my daily chart below. This fact not only creates a bearish signal but also invalidates the bullish pin bar scenario. The bias is bearish in nearest term testing 110.00 region (daily EMA 200). Immediate resistance is seen around 111.15. A clear break above that area could lead price to neutral zone in nearest term testing 111.55 area.
The USDJPY was indecisive last week but overall still able to maintain its bearish phase following a failure to break above 113.00 level as you can see on my daily chart below. The bias is neutral in nearest term. The inside bar bearish scenario triggered by a move below 110.75 also remains valid and can only be invalidated by a move above 111.55, with nearest bearish target seen around 110.00 region.
USD/JPY is trading well above 111.00 as the greenback is still influenced by the economic fundamentals from last week. Now first resistance is seen at 111.85 region, above which the pair is likely to test the 112.00 handle.
Dollar / yen made a bullish momentum yesterday, forming a peak at 111.31 and hit 111.43 earlier this morning after the rebound from EMA 200. Views are bullish in a short time for testing 111.55 - 112.00. Intrady support is 111.00. A clear break below it can take the price to a neutral trading area with testing at 110.75 or below.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.