USD/JPY: sub 114 handle targets S3 112.53

By FXStreet USD/JPY is currently in new territory below the 114 handle as the yen gathers pace across the board without there being much let up for the dollar either, despite Yellen sticking to her optimistic script.

The authorities of Japan will not be comfortable with the rate as high as this in the Yen, especially after their latest tactics of late. The BOJ move would appear an attempt to thwart the yen from becoming a safe-haven currency again, but has so far not come to serve such a purpose. From here the major will be cautious below 114.00 while intervention could be a possibility especially as oil prices remains below $30.00.

Technically, USD/JPY

USD/JPY is way below what had been the key support of 116.30/115.50 and has dropped below the base of the weekly cloud and the 23.6% retracement of the move from 2012. This now opens up the 112.00 level as a key target. RSI on the 4hr chart is at 37 while price is well below the 115.03 pivot. S2 is at 113.37 and S3 at 112.53.
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Source:: FX Street