USDJPY REMAINS UNDER SELLING PRESSURE
The USDJPY pair is still under considerable selling pressure, after only managing a tepid recovery towards 113.58, during the European session. The Yen currencies intraday strength remains, as the pair languishes around the 113.50 region, after yesterday's sharp drop from 114.50.
During the opening U.S session, Federal Reserve Chair Janet Yellen will testify before U.S Congress, where she will explain the current U.S economic situation, and the policies applied to improve it. After the testimony, a question and answers session follow, which should increase volatility in the USDJPY pair.
Technically, the USDJPY pair remains bearish in the short term and bullish in the medium term.
At present the pair is trying to build bullish momentum above the M5 time frame, 200 period moving average, at 113.45.
Key short-term upside targets for the USDJPY pair remain the M30 timeframe 200 period moving average, at 113.81 and the daily pivot at 114.06.
To the downside, the H1 time frame, 200 period moving average offers crucial support, at 113.39.
Below the 113.39, the 113.22 level sits as further intraday support, as does the daily time frame 200 period moving average, at 112.81.