The USD/JPY pair recommenced its decline and breaks the 113.50 support in the Asian trading, as the USD bears recovered poise amid dovish remarks by the Fed Chair Powell while markets pay no attention to the risk-on action on the equities.
1. Technical Overview
The increasing momentum seen in the last few days continues easing according to technical readings in the 4 hours chart, where signs are in frank retracement straight from overbought readings and now nearing their midlines. The 100 SMA in the mentioned chart lacks directional force a few pips under the current level, at around 113.35, providing an instantaneous short-term support, as a break below it will likely worsen the decline. The 200 SMA is also aimless at around 112.90, with bulls possibly giving up on a break below this last.
Support levels: 113.35 112.90 112.55
Resistance levels: 113.75 114.05 114.50
SUPPORT & RESISTANCE
S1 113.720 W R3 115.870 S
S2 112.9000 M R2 114.8800 M
S3 111.9100 S R1 113.9600 W