USDJPY has fallen below the key 110 level, increasing the bearish bias.
Following Tuesday’s break below 110, the pair extended losses today and is currently challenging an important support area provided by a Fibonacci level at 109.36. This is the 50% retracement of the upleg from 100 to 118.6 (September to December).
The 200-day moving average around 108.80 is now a target if there is increased downside momentum.
RSI has been little changed in the past couple of weeks, hovering above 30 and is not quite in oversold territory yet, while MACD has flattened out after falling below zero. The lack of direction in the momentum indicators suggests that the market could consolidate for now.
The bearish bias remains unless prices can move back above 112. This would bring a more neutral bias for USDJPY. A move above the Ichimoku cloud top and a break of the 115.49 high (March 10) would help bring a resumption of the uptrend that began from the 100 area in September.
Origin: XM
