USD/JPY: Bears Guarding 112.50 Barrier?

USD/JPY: Bears Guarding 112.50 Barrier?

31 March 2016, 12:20
Roberto Jacobs

USD/JPY: Bears Guarding 112.50 Barrier?

Having bottomed near 112.15 region, the USD/JPY pair tries hard to turn into positive territory, but in vain, as the yen keeps ground on the back of renewed weakness in the European indices.

USD/JPY holding firmly above Wednesday’s high

The yen continues to be preferred by markets in the European session on the back of safe-haven bids backed by the negative performance on the European indices. Hence, an unfavourable risk sentiment keeps the USD/JPY pair in the red. At the time of writing, USD/JPY trades modestly flat at 112.38, struggling to take-out 112.50 resistance.

Moreover, the recovery in the major also lacks momentum as the US dollar stalled its initial rebound and slipped back in the red against its major competitors ah markets remain wary ahead of the US datasets. The USD index drops -0.15% near fresh session lows of 94.56.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 112.64/66 (1h 200-SMA/ daily high). A break above the last, the major could test 113.00 (round number/ 1h 100-SMA). While to the downside, the immediate support is seen at 112.12/00 (Mar 23 Low) and below that at 111.36/20 (Mar 22 & 21 Low).

(Market News Provided by FXstreet)

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