FxWirePro: USD/JPY neutral near-term, scope for further downward downside

The Japanese yen accelerated its gain against US dollar, pulling the pair all the way towards 110.63 levels. It’s lowest since November 10th 2014 before recovering to trade at 111.46 levels, following the release of Philadelphia Fed Manufacturing Index.

• Further upside is expected to be limited as the resistance level at 112.50 levels is set to hold the bulls from advancing further above, and bring decline further towards lower levels in the short term.
   
• Immediate support can be seen at 111.25, a break below this level will expose the pair downwards towards 110.64 levels.
   
• Major resistance can be seen at 112.50, a break above this level will open the door towards 113.64 levels.
  
  Resistance Levels
  
  R1: 112.00 (Psychological levels)
  
  R2: 112.50 (50% Retracement Level)
  
  R3:113.64 (61.8% Retracement Level)
  
  Support Levels
  
  S1: 111.25 (38.2% Retracement Level)
  
  S2: 110.64 (Daily lows)
  
  S3: 109.86 (23.6% Retracement Level)