USD/JPY hit the lowest level of 111.13 since November 23 this morning, breaking the short term major support line at 111.50.
USD/JPY has turned bearish since March 15, saw its longest bearish streak since January. In the past week, USD/JPY has retraced about 3.14%. The plunge was caused by the weakening of the dollar post Fed rate rise profit-taking pressure.
On the daily chart, the 10 SMA has crossed over the 20 SMA, indicating the trend has turned bearish.
The bears are currently edging lower to test the next significant short-term major support line at 111.00, where the support is stronger.
The daily Stochastic Oscillator is below 10, suggesting a rebound.
If the price can be held above the level at 111.00, we will likely see a rebound.
However, if the support line is broken, we will likely see a further sell-off.
The resistance level is at 111.50, followed by 112.00 and 112.50.
The support line is at 111.00, followed by 110.50 and 110.00.
The Fed Chair Yellen will make a speech at Community Development Research, at 12:00 GMT, on Thursday March 23. Her hawkish / dovish tone will likely affect the strength of the dollar and the dollar crosses.