USDJPY BULLS DEFEND THE 200 DMA

The USDJPY pair has remained under strong selling pressure during the European session, managing only a tepid bounce towards the 113.19 level.

However, the 200-day moving average remains well defended by USDJPY bulls, with sellers unable to take price below the 112.84 level, ahead of the second day of FED Chair Janet Yellen's testimony on Capitol Hill.

The USDJPY pair remains bearish in the short term, and bullish in the medium term. Key technical resistance is found at the 113.35 level, with the former swing high at 113.50 adding further intraday USDJPY resistance.

Critical USDJPY support is found at 112.84, with selling pressure likely to accelerate once below this level.

Downside targets below the 112.84 level, remain the 112.51 level and the 100-week moving average, at 112.17.