The decline of the USD/JPY that was caused by the US Consumer Price Index release has passed all expectations of the USD bears. At the start of Thursday’s US trading hours, the USD/JPY rate was already passing support levels near 114.20. In the near term future, the pair was expected to eventually reach the 114.00 mark, which could stop a decline.
In the case that the rate reaches the 114.00 mark and passes below it, support could be provided by the early December high level zone at 113.87/113.96. Further below, the weekly S3 simple pivot point at 113.51 and the 113.50 level might stop a decline.
However, a recovery of the US Dollar against the Japanese Yen might find resistance first in the 114.20 mark, the weekly S2 simple pivot point at 114.23 and the late December resistance and support zone at 114.22/114.28. Above these levels, the rate might find resistance at the 114.40 level, as it had acted as support since mid-Wednesday.
Credit: www.fxstreet.com – Source link