USD/JPY Selling Pressure Intensifies, Drops Below 111.00 Mark
USD/JPY Selling Pressure Intensifies, Drops Below 111.00 Mark
The USD/JPY
pair upside was capped at a 3-week high level of 111.86 touched earlier
on Monday and the pair has now drifted back below 111.00 mark to
110.84.
On Friday, the pair moved sharply higher on expectations
of an announcement of further monetary stimulus measures by BoJ. The
pair on Monday has been witnessing a corrective move after its rapid
depreciation on Friday.
Technical levels to watch
The
pair is currently trading near 23.6% Fibonacci retracement level of its
last week's up-move from 107.84 to Monday's high of 111.86. Sustained
weakness below this level (110.85-75 zone) is likely to accelerate the
selling pressure towards 38.2% Fibonacci retracement level support near
110.30 level.
On the upside, move back above 111.00 mark might
now confront immediate resistance near 111.30 region. However, strong
upside resistance remains near day's high, 111.90-112.00 round figure
mark. Should the pair manage to decisively clear 112.00 mark hurdle, it
seems all set to extend its appreciating move in the near-term.
