The USD/JPY pair was very close to 111.00 today having been supported by the US ADP employment results and the stable yields.
However the pair retreated later to lower levels with current market price 110.66. It was somehow affected by the Fed's dovish comments, concerning the inflation and further limiting chances of further rate hikes.
Technically speaking the pair is showing some short term bearish signs. The price has crossed to below its 20-day SMA, while the 100-day SMA is extending its decline below the 200-day SMA and both are now well above the current level. The pair also failed to move above the 38.2% Fibonacci retracement of its latest decline. RSI is situated around its mid-line and has turned slightly to north. Stochastic is displaying strong bearish momentum even though is around 63 mark.
However, the risk remains towards the downside. Critical support is seen around 110.00 mark and in case of breaking it, the pair will be poised to extend its decline towards 108.80 9 (June’s low).