Further slides below 110.65. The USD/JPY pair retreats below the 111.00 level ahead of the US opening, following news coming from Japan that suggest more easing will come in June, and not in this week meeting as initially suspected. The generally weak tone of the greenback is also supporting the intraday decline that could be exacerbated by a negative result of the upcoming US housing data. From a technical point of view, the 1 hour chart shows that the price is still far above its 100 SMA, currently around 110.00, but that the technical indicators head sharply lower within bearish territory, supporting some additional declines on a break below 110.65, a major static support level. In the 4 hours chart, the price is back below a bearish 200 SMA, whilst the technical indicators retreat from extreme overbought territory, supporting the shorter term outlook.
Support levels: 110.65 110.30 109.80
Resistance levels: 111.00 111.40 11.90