USD/JPY: bearish below 113.50 – FXStreet

By FXStreet Ani Salama, analyst at FXStreet explained that USD/JPY edged lower on Wednesday and hit fresh 2-week lows during the American session on the back of disappointing US data, although the decline stalled a few pips ahead the 111.00 level and its 2016 low set at 110.97 earlier this month.

Key Quotes:

“A late recovery in US stocks helped USD/JPY to trim daily losses but the upside remained limited with the overall picture still bearish. In the 1 hour chart indicators head higher, reflecting the recent bounce, but hold in negative territory.

In the 4 hours charts, indicators hover well below their mid-lines and the RSI corrects from oversold conditions, while the 20-SMA maintains the upside limited around 112.30. It will take a clear break below 111.00 to confirm a steeper decline with the 110.10/00 zone as immediate target.

On the other hand, USD/JPY needs to regain the 113.50 zone to ease the immediate bearish pressure.”
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Source:: FX Street