USD/JPY Lower

USD/JPY fell below 110 for a second time this month as YEN bulls are pushing the currency higher. Some experts even predict that we might see USD/JPY below 100 this year as a result of a strong Yen. Whatever the case may be, it is obvious that the pair is in a downtrend that started after the short-lived post-presidential rally.

The pair is now 109.28, well below the 200SMA and dangerously close to the support at 108.13 for a potential double bottom. The 108.13 is now regarded as a first bear target. Beneath it, the levels around 106.20-107 make for a good support on the medium term.

On the other hand, if the US dollar gains new strength, the pair could reach the 200SMA at 112.50 as first bull target. After that, we can see price reach 113.70-114 as major medium term bull target.

Chart: USD/JPY D1