Fxwirepro: Usd/jpy Neutral in the Near-Term, Scope for Downward Resumption

  • USD/JPY dipped on Monday as a weaker U.S. dollar and political turmoil in the United States fuelled demand for safe-haven Japanese yen.
     
  • Investors continue to focus on the problems that have engulfed President Donald Trump's U.S. administration over the last week but there were other familiar and not so familiar issues to deal with too.
     
  • The pair is set to reach 110.80 and later towards 110.50 in the short term as the US dollar is set to weaken against its Japanese counterpart in the short term. Therefore it’s good to sell this pair on rally.
     
  • To the upside, the strong resistance can be seen at 111.73, a break above this level would take the pair towards next resistance level at 112.25.
     
  • To the downside immediate support can be seen at 110.68, a break below this level will open the gates towards next level at 110.20.

    Resistance Levels

    R1: 111.45 (50% Retracement level)

    R2: 111.73 (May 18th high)

    R3: 112.25 (61.8 % Retracement level)

    Support Levels

    S1: 110.68 (38.2% Retracement level)

    S2: 110.20 (May 18th lows)

    S3: 109.70 (23.6% Retracement level)

The material has been provided by InstaForex Company – www.instaforex.com

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