USD weakened against JPY on Wednesday, but no significant losses were registered. Despite the early gains in the Asian session the analyst team of ADS Securities believes in a bearish USDJPY below 110.90 level. What are the odds for USDJPY to breakout of consolidation and head this direction?
30 March, ADS Securities – The Yen traded marginally higher against the US Dollar in the prior session, as early gains were trimmed by better than expected pending home sales data in the US. Early today, the pair started the session with an upward trend. However, a bearish trend reversal is indicating a potential bearishness in the coming session.
Bearish USDJPY below 110.90 handle
Traders would eye the inflation data in Japan to be released today. Moreover, a signal line crossover from above by the MACD further endorses the above stance.
Key support is seen at the 111.10 level, followed by the psychological 111.00 where EMA 55 is trading and 110.90 levels. A move back below the latter might lead to further bearish momentum in the pair. On the contrary, key resistance is located at the 111.30 level, followed by the 111.45 and 111.50 where 200 EMA is situated.
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