USD/JPY: Further declines on a break below 110.10

The USD/JPY pair is down, trading at daily lows in the 111.20 price zone, with yen gains limited by substantial greenback demand. USD/JPY bearish potential increasing, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“Japan celebrated a holiday, which means it didn’t release macroeconomic data. The US will publish minor figures, the January Chicago Fed National Activity Index, and the February Dallas Fed Manufacturing Business Index. Plummeting equities and government bond yields are the main theme this Monday.”

“The USD/JPY pair is pressuring the 38.2% retracement of its latest bullish run, and technically bearish according to the 4-hour chart, as it has broken below its 20 SMA, which anyway retains its bullish slope.”

“Technical indicators continued to give up, with the Momentum heading south below its 100 level, and the RSI hovering around 52. Further declines are to be expected on a break below 111.10, the immediate support.”