USDJPY TESTS 200 DAY MOVING AVERAGE

The USDJPY pair has moved down towards its 200 period moving average, as the Japanese Yen rallied strongly against the U.S dollar, following the release of a dovish pre-prepared speech from FED Chair Janet Yellen, during her semi-annual testimony on Capitol Hill.

Janet Yellen said that future U.S rate hikes will be gradual until policymakers meet their comfort levels, whilst weak United States inflation remains puzzling to the Federal Reserve.

The USDJPY pair has turned bearish in the short and medium term, as selling pressure builds whilst the pair trades below the 113.35 level.

Key technical USDJPY support is found at the 112.84 level, which represents the 200 day moving average. Further support is found at the daily time frame, 20 period moving average at 112.63, and the former weekly price low, at 112.18.

To the upside, USDJPY resistance is found at the weekly pivot point at 113.35, and the H1 time frame 200 period moving average, at 113.48.