By CountingPips.com
The US dollar has been trading lower today against the Japanese yen in forex trading on risk aversion due to the conflict in Libya. The dollar/yen pair had closed higher in yesterday’s trading after falling lower to finish last week. Today’s decline that has brought the USD/JPY down to the 82.70 exchange rate.
The USD/JPY had been on an upswing for most of February with a top culminating at the 83.96 exchange rate on February 16th. The pair tested (for the first time since June 2010) but failed to close above the 200-day moving average (in black) and instead bounced off and decreased lower.
The pair currently trades just above a previous support line near the 82.50 level after today breaking through the 50.0 Fibonacci retracement level (on the move down from 85.92 to 80.17). Further bearishness could bring a test of the 38.2 Fibonacci level at 82.35 while upside barriers are present at the 50.0 Fibonacci retracement level near 83.00 and resistance around 83.50.
The MACD indicator signals a potentially imminent bearish cross, suggesting further bearish price action could be in store.
USD/JPY Daily Forex Chart
