USDJPY STILL BEARISH BELOW 112.05 LEVEL
The U.S dollar has edged higher against the Japanese yen overnight, as the pair makes a muted upside recovery after crashing to the 111.25 level on Wednesday. The recent move higher in the USDJPY pair was sparked by demand for U.S dollars, around the key 92.00 technical level. Price-action is now testing the pairs 200-day moving average, which is found at the 111.78 level, and is a key metric of the USDJPY pairs trading sentiment. Traders now look to the U.S dollar index’s next directional move, and December PPI inflation figures from the United States economy.
USDJPY sellers retain control of the pair while price-action trades below the 112.05 level, downside targets for sellers remain 111.25 and 110.84.
Should the USDJPY pair start to trade above the 112.05 level, further upside towards 112.31 and 112.69 seems possible.