It was an interesting day for the USD/JPY today, as the Japanese yen gained momentum, boosted by the consolidation in equity prices in negative territory in Wall Street amid the treasuries recovery.
The pair is currently trading at 110.78 and is about to close the day below the key level at 111.00, that has not been visited for the past two weeks.
On the four-hour time frame the 20-day SMA has turned sharply to south, while the price is standing well below the 100-day and 200-day SMAs that are staying flat and are loosing directional strength.
RSI and stochastic are located far form their mid-lines and are displaying bearish momentum.
Immediate support is seen at the 61.8% Fibonacci retracement of latest up leg (110.50) and in case of breaking it to below, next bears’ target is seen at 110.20 (May 18th’s low) and this would confirm short term downwards movement.