The US dollar has moved sharply lower against the Japanese yen during the European trading session, with price now trading below the 112.00 level. The 112.20 support level had been a major barrier for sellers, with this level now clearly broken the down move could easily extend towards the 111.30 level. The USDJPY pair is also likely to remain pressured if US equity prices continue to react negatively to the latest US rate increase.
The USDJPY pair is strongly bearish while trading below the 112.20 level, key technical support is found at the 111.30 and 110.90 levels.
If USDJPY pair trades above the 112.20 level, buyers may test the 112.50 and 112.68 levels.
