The US dollar has extended intraday losses against the Japanese yen currency during the European trading session, with the risk-sensitive pair break below key trendline support. The MACD indicator on the four-hour time frame is also signalling further short-term downside ahead for the USDJPY pair. The USDJPY is also likely to remain under pressure if US equity markets continue to decline.
The USDJPY pair is strongly bearish while trading below the 112.42 level, key support remains at the 112.20 and 111.30 levels.
If the USDJPY pair trades above the 112.42 level, buyers may test towards the 112.55 and 112.90 resistance levels.
