USDJPY TESTING BREAKOUT SUPPORT
The US dollar has fallen towards critical support against the Japanese yen, as worsening trade tensions between the US and China help support buying in the yen currency. The USDJPY pair risks erasing its recent gains if price breaks below the key 111.37 level. Financial markets have largely looked past yesterday’s FOMC meeting, as traders price-in two more rate increases from the US central bank this year.
The USDJPY pair is only bullish while trading above the 111.37 level, further upside towards the 112.05 and 112.90 still remains possible.
If the USDJPY pair trades below the 111.37 level, sellers will likely test towards the 111.00 and 110.70 support levels.