USD/JPY: The pair continues to hold on to its downside pressure closing lower the past week. On the downside, support comes in at the 110.50 level where a break if seen will aim at the 110.00 level. A cut through here will turn focus to the 109.50 level and possibly lower towards the 109.00 level. On the upside, resistance resides at the 111.50 level.
Further out, we envisage a possible move towards the 112.00 level. Further out, resistance resides at the 112.50 level with a turn above here aiming at the 113.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the whole, USD/JPY looks to weaken further in the new week.
