USD/JPY Selling Pressure Intensifies, Drops Below 111.00 Mark

USD/JPY Selling Pressure Intensifies, Drops Below 111.00 Mark

25 April 2016, 14:57
Roberto Jacobs
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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.


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