- USD/JPY declined on Tuesday as political turmoil in Washington increased demand for safe haven Japanese yen.
- Uncertainty was expected to continue weighing on the dollar, following President Donald Trump's ouster of White House communications chief Anthony Scaramucci on Monday, 10 days after he was hired.
- Concerns also persisted about whether the Fed would raise interest rates again this year. Expectations for a December rate hike from the U.S. central bank last stood at about 50 percent, according to CME Group's FedWatch program.
- The dollar fell below 110 yen for the first time in more than six weeks, touching 109.94 yen. The dollar was last at 110.17 yen.
- The ongoing weakness is set to continue for this pair as the resistance level at 111.00 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
- To the upside, the immediate resistance can be seen at 110.43, a break above this level would take the pair towards next resistance level at 111.00.
- To the downside, immediate support can be seen at 109.84, a break below this level will open the door towards next level at 109.14.
Resistance Levels
R1: 110.43 (50% Retracement Level)
R2: 111.00 (61.8% Retracement Level)
R3: 111.32 (July 28th high)
Support Levels
S1: 109.84 (38.2% Retracement Level)
S2: 109.14 (23.6% Retracement Level)
S3:109.00 (Psychological levels)
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