FxWirePro: USD/JPY pauses decline, downside risk remains

• USD/JPY declined on Friday as a surging euro pushed the dollar to its weakest since June 2016,while obstacles to U.S. President Donald Trump's policy agenda also weighed.
   
• Trading volume was light in the absence of major U.S. economic data and some caution ahead of the Federal Reserve's two-day policy meeting that will begin on Tuesday.
   
• The dollar index touched 93.952, its lowest level since June of last year, and was last down 0.3 percent at 94.032.
   
• Further upside for this pair is expected to be limited as strong resistance level at 112.72 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 111.81, a break above this level would take the pair towards next resistance level at 112.40.
   
• To the downside immediate support can be seen at 110.97, a break below this level will open the gates towards next level at 110.38.
  
  Resistance Levels
  
  R1: 111.81 (50% Retracement level)
  
  R2: 112.40 (July 20th high)
  
  R3: 112.72 (61.8% Retracement level)
  
  Support Levels
  
  S1: 110.97 (38.2% Retracement level)
  
  S2: 110.38 (May 31st lows)
  
  S3: 110.00 (Psychological Levels)

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest