FxWirePro: USD/JPY neutral in the near-term, scope for downward resumption
Thursday, May 25, 2017 5:30 PM UTC
- The USD/JPY pair dipped on Thursday as greenback struggled for direction after minutes from Wednesdays U.S. Federal Reserve meeting suggested that the central bank could take a more cautious approach to interest rate increases.
- Fed policymakers had agreed at the meeting that they should hold off from raising rates until it is clear that a recent U.S. economic slowdown is only temporary, though most said an increase is coming soon.
- Further upside in this pair is likely to be limited as the pair finds strong resistance at 108.00 which should limit more upside and bring a decline towards lower levels.
- To the upside, the strong resistance can be seen at 109.50, a break above this level would take the pair towards next resistance level at 109.92.
- To the downside immediate support can be seen at 109.14, a break below this level will open the door towards next level at 108.80.
Resistance Levels
R1: 111.98 (38.2% Retracement Level)
R2: 112.51 (50% Retracement Level)
R3: 113.00 (61.8% Retracement Level)
Support Levels
S1: 111.30 (23.6% Retracement Level)
S2: 111.00 (Psychological levels)
S3: 110.52 (May 18th lows)