The US dollar recorded a decline against the Japanese yen on Friday. The currency pair opened at 112.27 and the dollar lost 40 pips. Graphics continued to grow below moving averages, while the relative strength index remained neutral. If the bearish mood continues, we can expect a first support test at 110.90.
The dollar / yen had a bearish momentum last week, reaching a bottom of 111.68 after a fake breakthrough over key resistance 113.20 and the emergence of a bearish pin bar. The views are down to testing 111.65. Clear break below this level will open doors to support 111.00 - 110.65. Intraday resistance is at 112.35. A clear breakthrough over it could take the price to a neutral zone, but only a clear break above 113.20 will halt the current short-term downside outlook.
The US dollar recorded a rise against the Japanese yen on Wednesday. The session started at 112.19 and ended at 112.92. After a steady upward movement, the price managed to break the first resistance at 112.90. If the direction of motion continues upward, perhaps there will be an attempt to break the first resistance at 114.30.
The USDJPY falls back from the 113.00 level as the Yen rises on risk aversion. The pair has not been able to break above the 113.00 level, but it keeps hammering that level. The 112.00 level may act again as support, keeping the USDJPY boxed between those two levels.
The dollar fell against the yen. The USD/JPY fell by 0.08% to 113.65 after the maximum of 114.24 in three weeks, which was fixed on Wednesday. In recent sessions, the dollar received support amid forecasts of tax reform in the US, strengthened after the Senate approved changes in the budget that would allow Republicans to adopt a tax reduction program without the support of the Democratic Party.