112.00 stops the USD/JPY again

112.00 stops the USD/JPY again
  • 112.00 sees bearish pressure
  • $DXY trading under 97.00

After soaring for 110 pips the USD/JPY sees bearish pressure again at 112.00 and 113% retracement of the last leg down. It wasn’t a surprise though, this level was tested fiercely in early March with bulls unable of breaking above, so not only this previous base has sellers positioned around it but short term buyers took profit here too.

All the dovishness around the US Dollar has made it almost impossible for the $DXY to retest and break above the 97.70 level which is making for the USD/JPY to break above the 112.00 even harder. JPY consumer confidence dropped and has been since late 2018 which makes the JPY weaker and the USD/JPY soar. Tomorrow’s trade balance will be key and the forecast is not good and if the actual number comes as expected this currency pair will finally break above the 112.00 and we will be looking for a pullback to get in. If not a break below 111.80 could give us some short term short opportunities.