- The USD/JPY declined on sharply on Tuesday as dollar weakened across the board after Federal Reserve chair Janet Yellen said it was appropriate for Fed to proceed cautiously in hiking rates.
- Further upside is expected to be limited as the pair finds strong resistance at 113.28 which should limit upside and bring a decline towards lower levels.
- Technically the pair has extended its decline below its 21 DMA, the RSI in the 4 hour chart is indicating downwards at 46, meanwhile the 55, 30 and 20 MA's are pointing strong bearish momentum towards lower side. Overall the technical indicators are depicting further downtrend for this pair.
- To the upside, the strong resistance can be seen at 113.28, a break above this level would take the pair towards next resistance level at 113.79.
- To the downside immediate support can be seen at 112.78, a break below this level will open the door towards next level at 112.58.
Resistance Levels
R1: 113.00 (Psychological levels)
R2: 113.28 (61.8% Retracement Level)
R3: 113.79 (Daily high)
Support Levels
S1: 112.78 (50% Retracement Level)
S2: 112.58 (March 10th lows)
S3:112.27 (38.2% Retracement Level)
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