USD/JPY Forecast: Back in the Bearish Path
USD/JPY Current price: 109.21
Back in the bearish path. The USD/JPY pair is in free fall this Wednesday, down to 109.08 so far today. During the past Asian session, Prime Minister Shinzo Abe declared that he will delay the increase of the sales tax until 2019 in order to achieve strong growth. The announcement fueled demand for the local currency, already on demand to plummeting stocks spurring risk aversion. Down over 200 pips from its Monday's peak, the pair is extremely oversold in the short term, but there are no technical signs that it can reverse course. In the 1 hour chart, the price is well below its moving averages, whilst the technical indicators have partially lost downward strength, but remain in extreme oversold levels. In the 4 hours chart, the price is struggling around a horizontal 200 SMA after breaking below the 100 SMA, whilst the technical indicator maintain their sharp bearish slopes well below their mid-lines, supporting some additional declines on a break below 109.05, the immediate support.
Support levels: 109.05 108.70 108.30
Resistance levels: 109.50 110.00 110.40