USD/JPY Slips Further Below 111.00 Mark
Following its rapid up-move on Friday last week, the USD/JPY extended its profit-taking move on Tuesday and is currently trading at day's low near 110.70 level.
The pair has been moving higher on expectations of further easing by BoJ. However, traders now seems to unwind their USD bullish bets on speculation that the US central bank might keep its monetary policy unchanged for some more time.
Technical levels to watch
From current levels, dip below 110.60 level is likely to test 110.30 support area marking 38.2% Fibonacci retracement level of 107.84-111.86 upsurge. Weakness below 110.30 might accelerate the selling pressure towards 50% Fibonacci retracement level support near 109.85-80 area.
Alternatively, immediate up-move now seems to confront resistance near 111.00 handle, which if cleared should aim for 111.30 resistance area. It should, however, be noted that major upside resistance remains near 111.90-112.00 round figure mark.