The US dollar is coming under increasing downside pressure against the Japanese yen after the US dollar index suffered a steep reversal on Thursday. What is next? Find out from today's USDJPY technical analysis.
2 November, OctaFX – The US dollar index moved to a sixteen-month trading high this week above the 97.00 resistance level before sharply reversing course.
The greenback surged across the board in early week trade after much better than expected Consumer Confidence and Private Sector employment data from the United States economy.
The US dollar quickly gave back previous gains against a basket of top-tier currencies, following optimism over a potential trade deal between the United States and China and slightly weaker than expected Manufacturing PMI data from the American economy.
USDJPY Technical Analysis
Bearish momentum is starting to build, with technical sellers testing the 113.00 support level. The recent reversal from the 113.40 level has the potential to create a bearish head and shoulders pattern on the lower time frames.
- The USDJPY pair is bearish while trading below the 112.87 level, key support is now found at the 112.20 and 111.10 levels.
- If the USDJPY pair trades above the 112.87 level, buyers are likely to test the 113.40 and 114.20 resistance levels.
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