JAPANESE STOCKS PRESSURE USDJPY LOWER
The USDJPY pair has fallen sharply from 112.92 to a intraday low of 11.73, driven by U.S dollar index selling pressure and risk-off sentiment in Asian equities, with the Japanese benchmark index, the Nikkei 225, falling over one percent.
Downbeat Japanese data has added further USDJPY selling pressure, as Japanese industrial production fell –3.3%, and Japanese preliminary core inflation data declined to a zero reading.
The USDJPY pair remains bearish in the short time, but retains a bullish medium term bias whilst trading above the H1 time frame 200 period moving average at 111.61.
Resistance for the USDJPY pair is located at the daily calculated pivot point at 112.24, and the daily time frame 200 period moving average at 112.58.
To the downside, the weekly pivot point offers support at 111.80, whilst the 111.51 level remains critical intraday support for the pair.