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USD/JPY Looks Set for Further Losses

December 3, 2021

  • USD/JPY started a fresh decline below the 113.50 support level.
  • It broke below a major bullish trend line with support near 114.20. 

The US Dollar, Japanese Yen pair started a fresh decline from above the 115.00 level. USD/JPY even broke support at 114.20 and looks to continue bearish.

USD/JPY 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the pair even extended its decline below the 113.50 support level. The quote also moved below the 113.20 level, the 100-MA (red) and the 200-MA (blue). It traded as low as 112.53 before consolidating higher.

For the pair to turn bullish, the quote will first need to test resistance near 113.25. The next major resistance is near 114.00 and the 100-MA (red). This is also close to the 50% Fibonacci retracement level of the downward move from the swing high of 115.52 to the swing low of 112.53. A break above the 114.00 level could take the pair up towards the 114.80 or 115.00 resistance level.

In contrast, if the pair continues bearish, the quote will first test support near the 112.50 and 112.40 levels. A break here could see momentum take the quote down towards 111.50, a level last seen on October 8th.

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