USDJPY EXTREMELY BEARISH BELOW 112.30
The U.S dollar has moved to a new low against the Japanese yen, hitting 112.17 in early Wednesday trading, as mixed Chinese inflation figures and negative headlines from North Korea weigh on sentiment. The USDJPY pair has now pulled back slightly, with dip buyers testing the 112.30 resistance region, after intraday sellers failed to break the former price-low at 112.05. Downside price momentum in the USDJPY pair does however remain intact from Tuesday, with traders still likely to sell any rallies, after the BOJ scaled back buying on some longer-dated bond purchases.
The USDJPY pair remains strongly bearish while price-action trades below the key 112.30 level, sellers will likely be focused on the 112.05 and 111.68 downside levels.
Should the USDJPY pair start to hold price-action above the 112.30 level, buyers may try to move the pair toward the 112.70 and 112.88 resistance points.