- USD / JPY turns negative after hitting eight-day highs on Monday.
- The bears are looking to challenge the critical support of the 21-day SMA at 113.43.
- The RSI has turned lower, supporting the latest downward move in the pair.
USD / JPY is posting modest losses so far Tuesday after facing rejection once again above the 114.00 level.
The pair ends its two-day uptrend and corrects sharply from eight-day highs of 114.44, as US Treasury yields resume their recent slide ahead of the critical Fed decision. The weakness of the US dollar amid the repositioning also exacerbates the pain over the pair.
Looking at the USD / JPY daily chart, the price is extending the dip to test the upward sloping 21-day moving average at 113.43.
If the bearish momentum picks up, then the short-term trend line support at 113.28 could be tested.
A sharp sell below this last level cannot be ruled out, exposing the 113.00 region.
USD / JPY daily chart
However, with the 14-day RSI still above the midline, the decline is likely to remain limited.
On the other hand, acceptance above the weekly highs could point towards the Oct 20 highs of 114.70.
Higher up, the psychological level of 115.00 will challenge the bearish commitment.
USD / JPY additional levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
