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USD/JPY seeking to retake 110.00 after Thursday's slide

6/22/2018, 11:30:42 AMMarket Analysis
USD/JPY seeking to retake 110.00 after Thursday's slide

The USD/JPY pair is reaching upwards in early Asia trading for Friday, testing back into the 110.00 handle.

The Greenback retreated across the broader fx market on Thursday, sending the USD lower against the Japanese Yen. US Treasury yields also declined in the Thursday US session, further driving the Greenback down, as US markets recoiled following a US Supreme Court decision that makes companies collect taxes on online sales.

The USD/JPY pair fell into a low of 109.83 after Thursday's sell-off was over, and the pair is trying to find a bullish foothold and climb back over the key 110.00 level after falling below the key level in yesterday's decline.

Japan's National CPI figures came in as expected, with Core CPI coming in at 0.7%, matching both expectations and the previous reading, while the headline CPI figure came in at 0.7%, versus the expected 0.3%, and the 'core-core- CPI for Japan printed at 0.3%, in-line with expectations.

USD/JPY levels to watch

The pair is looking for higher ground, but downside pressure remains, and as FXStreet's own Valeria Bednarik noted, "as in the 4 hours chart, the pair is battling with converging 100 and 200 SMA, while technical indicators turned sharply lower, the Momentum currently pressuring its mid-line but the RSI indicator already at 40. A slide below 109.55, the immediate support, should lead to a test of 109.20, a critical support now, as below it bulls will likely give up resulting in a steeper decline ahead."

Support levels: 109.55 109.20 108.80

Resistance levels: 110.15 110.45 110.90