USD/JPY: bears set on a test of 111.50/00

By FXStreet USD/JPY is currently ending the session in the US below the midway point of the 112 handle after failing through the 200 sma on the 1 hr sticks at 112.56 vs highs of 112.60.

USD/JPY has been hit hard on the back of Yellen yesterday and a subsequent sell-off in the greenback from highs on 113.80 that has snapped the ascending channel’s support from 110.60 earlier in the month. Fundamentally, Asia wasn’t very kind to the Yen on the back of Japan’s preliminary Industrial production for April that offered a drop of 6.2% on a monthly basis and 1.5% compared to a year before, slightly below expectations while the ADP numbers were supportive of the greenback until 112.67 supply.

USD/JPY levels

USD/JPY is back below the 20 ma at 112.80, and is probing the 10 dma at 112.41. The bears seem set to test 112.00. “A break would shift the focus to 111.50 and the all important 111 level that has proven sensitive since mid-February,” explained Eric Theoret, CFA, CMT FX Strategist at Scotiabank. “Near term resistance is limited to 112.80 and 113.20.”
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Source:: FX Street