FxWirePro: USD/JPY consolidates around 109.99 levels, bias remains bullish
Tuesday, May 24, 2016 4:03 PM UTC
- The USD/JPY rose on Tuesday as increased speculation for an interest rate hike in coming months from Federal Reserve strengthened dollar across the board.
- Trader’s expectation of a rate increase from Federal Reserve picked up speed following April meetings released last week and comments on Monday from Fed’s central bankers signaled a possible June hike.
- Further upside is expected to be limited as the pair finds strong resistance at 109.16 which should limit upside and bring a decline towards lower levels.
- To the upside, the strong resistance can be seen at 110.69, a break above this level would take the pair towards next resistance level at 111.00.
- To the downside immediate support can be seen at 109.70, a break below this level will open the door towards next level at 109.16.
Resistance Levels
R1: 110.04 (Daily high)
R2: 110.69 (38.2% Retracement Level)
R3: 111.00 (Psychological levels)
Support Levels
S1: 109.70 (50% Retracement Level)
S2: 109.16 (Daily lows)
S3:108.71 (61.8% Retracement Level)