USD/JPY: embarking on strong support area in dollar's sell-off

Currently, USD/JPY is trading at 112.94, down -1.05% on the day, having posted a daily high at 114.31 and low at 112.68.

USD/JPY has dropped below the 113 handle falling from aforementioned highs, extending a run of seven days of decline. Indeed, the Trump rally in the dollar has pretty much all been unwound in the spot market with the euro headed towards the 1.08 handle and stock markets losing steam with a pick up on bonds and a slump in US yields. This move is a dollar move, but USD/JPY is now embarking on a strong area of support with 112.00 a major psychological level.

USD/JPY levels

With spot trading at 112.94, we can see next resistance ahead at 113.04 (Weekly Classic S1), 113.20 (Daily Classic S2), 113.43 (Hourly 20 EMA), 113.62 (Yesterday's Low) and 113.67 (Daily Classic S1). Support below can be found at 112.78 (Daily Classic S3), 112.68 (Daily Low), 111.50 (Weekly Classic S2), 109.24 (Weekly Classic S3) and 108.48 (Daily 100 SMA).