BREAKING NEWS : $500 - $5000 No Deposit Bonus Hurry up, Join Now!
Written by experienced traders and professional market analysts, our Forex technical analysis is just what you need to get an edge in your Forex trading
Advertisement InstaForex

USD/JPY: bleeding pauses, but risk remains toward the downside

Written by Valeria Bednarik | 2018-01-10 13:00:01 GMT

The USD/JPY pair resumed its decline early Asia after reaching 112.78, accelerating its decline mid-European morning, following headlines stating that Chinese officers have recommended to halt or reduce buying of US Treasuries. The pair broke the 112.00 level, which contained slides since early December, accelerating south afterward, now trading near its daily low of 111.26. Dollar's slide is on pause ahead of the US opening, but in the meantime, stocks are sharply lower in pre-opening trading, bonds are down and yields advancing. Higher yields usually back the case for a USD/JPY rally, but today's not the case.

The US will release some minor economic figures that can hardly change the ongoing negative sentiment toward the American currency, while later in the day, a couple of Fed's speakers will hit the wires. These last can have a limited influence on the USD trend short-term.

In the meantime, the pair maintains its strong bearish momentum according to technical readings in the 4 hours chart, with the price far below its moving averages that anyway continue lacking directional strength, while technical indicators continue heading lower, despite being in oversold territory. A modest bounce from here is possible, with resistances at 111.60 and 112.00 and selling interest probably resurging around this last. Below 111.20, the immediate support, the downward potential increases, with 110.87, November low, as the next bearish target.

Support levels: 111.20 110.85 110.50

Resistance levels: 111.60 112.00 112.40

View Live Chart for the USD/JPY


Valeria Bednarik

Start Trading With Top Industry Brokers

Broker Profile Open Account
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:888
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • xm
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • Markets
  • Minimum Deposit: 250 USD
  • Leverage of up to 1:200
  • Broker Type : Market maker
  • Regulation : CySEC
  • trade

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
  • Offer: 30 USD No Deposit Bonus - 50% Deposit Bonus
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us