Fxwirepro: Usd/jpy Outlook Weaker on renewed Downside Pressure

  • USD/JPY declined on Tuesday as demand for safe-haven assets like Japanese currency increased as investors looked for fresh cues following last week on the U.S. Federal Reserve's moderately dovish stance.
     
  • Investors were also worried that President Donald Trump will struggle to deliver promised tax cuts that propelled the market to record highs in recent months, with nervousness increasing ahead of a key healthcare vote.
     
  • The ongoing weakness is set to continue for this pair as the resistance level at 112.94 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
     
  • To the upside, immediate resistance can be seen at 112.13, a break above this level would take the pair towards next resistance level at 112.94.
     
  • To the downside, immediate support can be seen at 111.37, a break below this level will open the door towards next level at 110.83.

    Resistance Levels

    R1: 112.13 (50% Retracement Level)

    R2: 112.94 (61.8% Retracement Level)

    R3: 113.48 (March 17th  highs)

    Support Levels

    S1: 111.37 (38.2% Retracement Level)

    S2: 110.83 (Nov 11th lows)

    S3: 110.34 (23.6% Retracement Level)

The material has been provided by InstaForex Company – www.instaforex.com

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