Fxgecko: USD / JPY falling below 113.40 will fall further

China [CN]

Fxgecko foreign exchange strategist pointed out that if 113.40 is cleared in the short term, the USD / JPY may extend the downward trend to around 113.00.

Core points

24-hour view: last Friday, we thought USDJPY might fall below 113.70, but the next support level of 113.40 is unlikely to be threatened. Our view is not wrong. The USD / JPY fell to 113.68 before rebounding. The downward pressure seems to have eased and the dollar is unlikely to weaken further against the yen. Today, USDJPY is more likely to trade sideways between 113.60 - 114.20.

Outlook for the next 1-3 weeks: there is nothing to add to the update on Friday (January 21, when the price was 113.90). As emphasized, the short-term downward momentum has improved, but the USD / JPY must fall below 113.40 before it can fall to 113.00. The possibility of the USD / JPY falling below 113.40 is not high, but as long as the USD / JPY does not break through the strong resistance level of 114.45, the possibility of breaking down will rise further.